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Securities Market. Experience of Europe

Study Course Description

Course Description Statuss:Approved
Course Description Version:6.00
Study Course Accepted:02.02.2024 12:29:53
Study Course Information
Course Code:SBUEK_186LQF level:Level 6
Credit Points:2.00ECTS:3.00
Branch of Science:EconomicsTarget Audience:Business Management
Study Course Supervisor
Course Supervisor:Anželika Berķe-Berga
Study Course Implementer
Structural Unit:Faculty of Social Sciences
The Head of Structural Unit:
Contacts:Dzirciema street 16, Rīga, szfatrsu[pnkts]lv
Study Course Planning
Full-Time - Semester No.1
Lectures (count)8Lecture Length (academic hours)2Total Contact Hours of Lectures16
Classes (count)6Class Length (academic hours)2Total Contact Hours of Classes12
Total Contact Hours28
Part-Time - Semester No.1
Lectures (count)4Lecture Length (academic hours)2Total Contact Hours of Lectures8
Classes (count)3Class Length (academic hours)2Total Contact Hours of Classes6
Total Contact Hours14
Study course description
Preliminary Knowledge:
Macroeconomics, Microeconomics, Finance, Business management.
Objective:
To familiarise students with financial markets, the concept of securities market and its economic substance. The course includes topics of the basic principles of financial and securities market, its structure, types of securities and the types of securities markets.
Topic Layout (Full-Time)
No.TopicType of ImplementationNumberVenue
1Financing forms: share; internal; debt financing and innovative financing forms. Substance of the financial market and the role of securities market in it. Basic functions of financial market. Concept and economic substance of securities market, securities market as a means of attraction and placement of financial resources and capital. Advantages of the securities market in attraction of financial resources and capital. Comparison of participation capital and debt capital. Portfolio constraintsLectures1.00E-Studies platform
2Securities exchange participants (issuers of securities, investors). Securities market infrastructure (securities market brokers, stock exchanges, payment and storage systems, supervising authorities of securities market). Securities market in Europe.Lectures1.00E-Studies platform
3Analysing the initial portfolios.Classes1.00other
4Stock markets. The big stock exchanges – NASDAQ, NYSE, etc. The substance of stocks, their types, categories, advantages, factors affecting their value. Stock issue. Stock market indices. Capitalisation. Bear and bull strategies. Application of equities as an incentive for the staff.Lectures1.00auditorium
5Stock analysis and assessment methods. Fundamental analysis. Analysis indicators (EPS, P/E, P/B). Determining the optimal price. W. Buffett method. Dividend discounting model. Model of the remaining income. Technical analysis. Curves, Japanese candlestick charts, trends, trend changing figures, moving means. Other financial asset evaluation theories.Lectures1.00auditorium
6Share evaluation. Analysing portfolios.Classes2.00other
7Debt Securities. Government and Corporate Debt Securities. Mortgage Backed Securities. Risk and Ratings.Lectures1.00E-Studies platform
8Factors affecting debt securities, price calculation. Basic principles of calculating interest and profitability for debt securities. YTM. Impact of the market interest rate on the price of debt security. Analysis of advantages and disadvantages of debt securities. Comparison with other capital attraction options.Lectures1.00auditorium
9Financial market game (simulation).Classes1.00other
10Mutual funds. Fund-of-funds concept. Specific funds. Advantages and disadvantages of funds. Pension funds. Commodities. Other financial instruments.Lectures1.00E-Studies platform
11Securities portfolios, creating them. Risk and profitability. Volatility. Portfolio theory. CAPM.Lectures1.00E-Studies platform
12Securities in stock exchanges of EU/EEA countries. Practical creation of an investment portfolio. Applying various investment strategies and analysis measures. Portfolio presentations.Classes2.00auditorium
Topic Layout (Part-Time)
No.TopicType of ImplementationNumberVenue
1Financing forms: share; internal; debt financing and innovative financing forms. Substance of the financial market and the role of securities market in it. Basic functions of financial market. Concept and economic substance of securities market, securities market as a means of attraction and placement of financial resources and capital. Advantages of the securities market in attraction of financial resources and capital. Comparison of participation capital and debt capital. Portfolio constraintsLectures0.50E-Studies platform
2Securities exchange participants (issuers of securities, investors). Securities market infrastructure (securities market brokers, stock exchanges, payment and storage systems, supervising authorities of securities market). Securities market in Europe.Lectures0.50E-Studies platform
3Analysing the initial portfolios.Classes0.50other
4Stock markets. The big stock exchanges – NASDAQ, NYSE, etc. The substance of stocks, their types, categories, advantages, factors affecting their value. Stock issue. Stock market indices. Capitalisation. Bear and bull strategies. Application of equities as an incentive for the staff.Lectures0.50auditorium
5Stock analysis and assessment methods. Fundamental analysis. Analysis indicators (EPS, P/E, P/B). Determining the optimal price. W. Buffett method. Dividend discounting model. Model of the remaining income. Technical analysis. Curves, Japanese candlestick charts, trends, trend changing figures, moving means. Other financial asset evaluation theories.Lectures0.50auditorium
6Share evaluation. Analysing portfolios.Classes1.00other
7Debt Securities. Government and Corporate Debt Securities. Mortgage Backed Securities. Risk and Ratings.Lectures0.50E-Studies platform
8Factors affecting debt securities, price calculation. Basic principles of calculating interest and profitability for debt securities. YTM. Impact of the market interest rate on the price of debt security. Analysis of advantages and disadvantages of debt securities. Comparison with other capital attraction options.Lectures0.50auditorium
9Financial market game (simulation).Classes0.50other
10Mutual funds. Fund-of-funds concept. Specific funds. Advantages and disadvantages of funds. Pension funds. Commodities. Other financial instruments.Lectures0.50E-Studies platform
11Securities portfolios, creating them. Risk and profitability. Volatility. Portfolio theory. CAPM.Lectures0.50E-Studies platform
12Securities in stock exchanges of EU/EEA countries. Practical creation of an investment portfolio. Applying various investment strategies and analysis measures. Portfolio presentations.Classes1.00auditorium
Assessment
Unaided Work:
Individual work – report (portfolio), summaries (homeworks), presentation.
Assessment Criteria:
Accumulated grade and an exam. Percentage of the accumulated grade: attendance of classes (10%); activity in seminars (15%); homeworks (15%); individual work (20%) and exam (35%).
Final Examination (Full-Time):Exam (Written)
Final Examination (Part-Time):Exam (Written)
Learning Outcomes
Knowledge:Students gain knowledge about business financing possibilities, financial markets, their infrastructure, types of securities, methods of determining their value and analysing them. Gain understanding about financial and analytical indicators in the securities market, and portfolio construction issues.
Skills:Being competent in securities markets and ability to analyse their structure and companies; to understand financial and analytical indicators; gain basic skills in securities trading and financial instrument portfolio building.
Competencies:Ability to assess financial and analytical indicators. Ability to make calculations related to securities and to develop investment concepts, to attract financing to a company and to plan a company’s investments into the securities market.
Bibliography
No.Reference
Required Reading
1Dempsey M. Investment Analysis: An Introduction to Portfolio Theory and Management. Routledge, 2020
2Linton D. E. Foundations of Investment Management: Mastering Financial Markets, Asset Classes, and Investment Strategies. J. Ross Publishing, 2020
3Bodie Z., Kane A., Marcus A. J. Essentials of Investments. 11th Ed. McGraw-Hill Education, 2019
4Mishkin F. S., Stanley G. E. Financial Markets and Institutions. 9th ed. Pearson Ed., 2018
Additional Reading
1Introduction to Portfolio Theory
2Iyiola O., Munirat Y., Nwufo C. I. The Modern Portfolio Theory as an Investment Decision Tool. Journal of Accounting and Taxation, 2012, 19–28.
Other Information Sources
1List of European Stock exchanges.
2http://www.nasdaqomxbaltic.com
3http://www.nasdaqomxnordic.com/
4https://www.euronext.com/en
5https://www.londonstockexchange.com/
6https://deutsche-boerse.com/dbg-en/
7https://www.six-group.com/en/products-services/the-swiss-st…