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.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Greg Jamieson
Available to Study Abroad Students: Yes
Subject year level: Year Level 2 - UG
Exchange Students: Yes
Subject particulars
Subject rules
Prerequisites: FIN1FOF
Co-requisites: N/A
Incompatible subjects: FIN3SEV
Equivalent subjects: FIN3SEV
Special conditions: N/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(Critical Thinking,Inquiry/Research)
- Personal and Professional Skills(Ethical behaviour)
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(Critical Thinking,Inquiry/Research)
- Discipline -Specific Knowledge and 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(Critical Thinking,Inquiry/Research)
- Discipline -Specific Knowledge and 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(Writing,Speaking,Quantitative Literacy)
- Discipline -Specific Knowledge and 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(Critical Thinking,Inquiry/Research)
- Discipline -Specific Knowledge and 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(Writing,Speaking,Quantitative Literacy)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Discipline -Specific Knowledge and 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(Writing,Speaking,Quantitative Literacy)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Inquiry/Research)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
Melbourne, 2018, Semester 2, Blended
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Greg Jamieson
Class requirements
Problem Based LearningWeek: 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 ClassWeek: 31 - 43
One 1.0 hours unscheduled online class per week from week 31 to week 43 and delivered via online.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| Skills Development Tasks | 500 words equivalent REPORTABLE GRADUATE CAPABILITIES: Quantitative Literacy | 10 | 01, 02, 03, 04 |
| Individual 5-minute credit analysis presentation and 5-minute Q&A | REPORTABLE GRADUATE CAPABILITIES: Inquiry/Research Critical Thinking | 20 | 07 |
| Group 10-page investment valuation report (1,000 words per student) | Group of 3 | 20 | 05, 06 |
| 2-hour final examination | REPORTABLE GRADUATE CAPABILITIES: Disciplinary Knowledge and Skills | 50 | 01, 02, 03, 04, 05, 06 |