INVESTMENT SECURITIES

FIN2SEV

2018

Credit points: 15

Subject outline

Financial securities provide the primary means by which companies are able to raise capital to fund their business activities.  In this subject you will learn about the two major types of financial securities: equity securities and debt securities.  The subject called Derivative Securities will introduce you to the third major financial security: derivative securities.  The different risk and return characteristics of equity and debt securities will be examined in this subject.  You will also compare and contrast the different international markets on which equity and debt securities are traded.  You will learn how to buy and sell equity and debt securities and how to monitor the performance of the equity and debt securities you may acquire.  Key to making the decision whether to buy or sell any financial security is an evaluation of the market price of a financial security as compared with your estimation of its intrinsic value.  Hence, a major focus of this subject is to provide you with the knowledge and skills required to be able to calculate the intrinsic value of various types of equity and debt securities. 

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorGreg Jamieson

Available to Study Abroad StudentsYes

Subject year levelYear Level 2 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites FIN1FOF

Co-requisitesN/A

Incompatible subjects FIN3SEV

Equivalent subjects FIN3SEV

Special conditionsN/A

Graduate capabilities & intended learning outcomes

01. Analyse and resolve ethical dilemmas associated with investment research and the provision of investment advice;

Activities:
Class discussion and debate around ethical question raised in the researching and valuing of the company.
Related graduate capabilities and elements:
Inquiry and Analytical Skills
Personal and Professional Skills

02. Define and compare the risk and return characteristics of different types of debt and equity securities;

Activities:
A comparative analysis of various financial securities
Related graduate capabilities and elements:
Inquiry and Analytical Skills
Discipline -Specific Knowledge and Skills

03. Define primary and secondary debt and equity markets and explain how they operate;

Activities:
A comparative analysis of various international financial markets
Related graduate capabilities and elements:
Inquiry and Analytical Skills
Discipline -Specific Knowledge and Skills

04. Compare and contrast various methods used to construct market indices and calculate the value and return of an index according to the manner of its construction;

Activities:
Construct an market index
Related graduate capabilities and elements:
Literacies and Communication Skills
Discipline -Specific Knowledge and Skills

05. Analyse macroeconomic, technological, demographic, governmental, and social influences on industry growth, profitability, and risk;

Activities:
On-line research into the competitive position of a listed company
Related graduate capabilities and elements:
Inquiry and Analytical Skills
Discipline -Specific Knowledge and Skills

06. Write a clear, concise and well-structured report, presenting the argument as to the intrinsic value and your investment advice in respect of a financial security.

Activities:
Writing an investment valuation report
Related graduate capabilities and elements:
Literacies and Communication Skills
Inquiry and Analytical Skills
Inquiry and Analytical Skills
Discipline -Specific Knowledge and Skills

07. Deliver an oral presentation of the evaluation of the credit quality of a potential corporate bond issuer.

Activities:
Conducting a credit analysis of a financial security
Related graduate capabilities and elements:
Literacies and Communication Skills
Inquiry and Analytical Skills
Inquiry and Analytical Skills
Discipline -Specific Knowledge and Skills

Subject options

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Start date between: and    Key dates

Melbourne, 2018, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Problem Based Learning Week: 31 - 43
One 2.0 hours problem based learning per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
"In addition, students are expected to undertake between 1 h and 3 h of online learning and assessment activities each week prior to class."

Unscheduled Online Class Week: 31 - 43
One 1.0 hours unscheduled online class per week from week 31 to week 43 and delivered via online.

Assessments

Assessment elementComments% ILO*
Skills Development Tasks500 words equivalent REPORTABLE GRADUATE CAPABILITIES: Quantitative Literacy10 01, 02, 03, 04
Individual 5-minute credit analysis presentation and 5-minute Q&AREPORTABLE GRADUATE CAPABILITIES: Inquiry/Research Critical Thinking20 07
Group 10-page investment valuation report (1,000 words per student)Group of 320 05, 06
2-hour final examinationREPORTABLE GRADUATE CAPABILITIES: Disciplinary Knowledge and Skills50 01, 02, 03, 04, 05, 06