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Syllabus

UNIT
1
INVESTING FUNDAMENTALS

Types of Investment – Equity Shares, IPO/ FPO,Bonds. Indian Securities Market: the market participants, trading of securities, security market indices. Sources of financial information. Role of Stock Exchange, Stock exchanges in India: BSE, NSE, MCX. Buying and selling of stocks: using brokerage and analysts’ recommendations. Use of limit order and market order.

UNIT
2
STOCK ANALYSIS AND VALUATION - I

Online trading of stocks. Understanding stock quotations, types and placing of order. Risk: its valuation and mitigation, Analysis of the company: financial characteristics (as explained by ratio analysis, future prospects of the company, assessing quality of management using financial and non-financial data, balance sheet and quarterly results, cash flows and capital structure).

UNIT
3
STOCK ANALYSIS AND VALUATION - II

Comparative analysis of companies, Stock valuations: using ratios like PE ratio, PEG ratio, Price Revenue ratio. Use of Historic prices, simple moving average, basic and advanced interactive charts. Examining the shareholding pattern of the company. Pitfalls to avoid while investing: high P/E stocks, low price stocks, stop loss, excess averaging.

UNIT
4
PRACTICE - I

Select a List company – Follow the Share prices daily – Make a record of it with evidence – Analyze the share price movement with the Accounting tools of UNIT II and UNIT III.

UNIT
5
PRACTICE – II

Make a report with the analysis and suggest to others whether it is safe to invest in that company with evidence and logic

Reference Book:

1. Chandra, Prasanna, Investment Analysis and Portfolio Management, Tata McGraw Hill.

Text Book:

1. Gitman and Joehnk, Fundamentals of Investing, Pearson.

 

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