About Course
Equities are one of the most important assets in the investment portfolio. It is a stock or any other asset representing ownership of an interest in a company. Before making any investment in any equity, it is extremely important to analyze and value the same, to make sure that it is actually worth investing in.
This section is covered under two parts, the first one is ‘market organization, market indices, and market efficiency’ and the second one is ‘equity analysis and valuation’.
The first part, i.e. ‘market organization, market indices, and market efficiency’ explains important characteristics of the markets in which equities, fixed-income instruments, derivatives, and alternative investments trade. The reading on market organization and structure describes market classifications, types of assets and market participants, and how assets are traded. The reading on security market indices explains how indices are constructed, managed, and used in investments. The reading on market efficiency discusses the degree to which market prices reflect information. It also explains the implications of different degrees of market efficiency for security analysis and portfolio management.
The second part, i.e. ‘equity analysis and valuation’ focuses on the characteristics, analysis, and valuation of equity securities. The first reading discusses various types and features of equity securities and their roles in investment management. The second reading explains how to conduct industry and company analyses; the reading’s major focus is on understating a company’s competitive position. The first two readings constitute necessary background knowledge for the third reading, which introduces the subject of equity valuation.