Introduction to Investments

Overview

This IIMBx course is designed to help learners understand the key terms and concepts used in equity markets and security valuation. It familiarises learners with the general structure of primary and secondary equity markets from a domestic and international perspective.

Beginning with introductory finance notions of risk and return, the course examines qualitative concepts such as market efficiency and valuation.

These tools enable learners to build valuation models for common stocks. Through this process, they will also learn about how professional financial analysts should evaluate companies.

The course is suitable for students seeking eventual employment with a brokerage company, investment company or financial services company with responsibilities in evaluating and selecting equity securities for investment portfolios.

Prof. S J Badrinath

Course Instructor
Finance and Accounting
Indian Institute of Management Bangalore (IIMB)

Full Profile
Course Details

5 weeks

4 - 5 hrs per week

Course Syllabus

Week 1: Introduction to Investments
  • Overview.
  • Message from the Instructor
  • Approach to the Course
Week 2: Introduction Markets, Participants and Performance
  • Real Versus Financial Assets
  • History of Stock Markets, Players and Funds
  • Financial Analysts
  • Role for Retail Investors
  • Rates of Return – Review and More
Week 3: Market Structure
  • Measuring Expected Returns, Discussing Risk
  • Tying Risk and Returns to Pricing Assets
  • Market Indices
  • Primary Markets
  • Types of Markets
  • Types of Orders
Weeks 4: Trading Locations and Practices
  • Stock Exchanges
  • Technology in Trading
  • How Margin Works
  • Advanced Margin Considerations
  • Short Selling – Basics
  • Short Selling – Games and Strategies
  • Setting the Valuation Stage
  • Economic Analysis – Measurement Issues
  • Economic Analysis – Policy Issues

 

Weeks 5: Basics of Valuation
  • Business Cycles and Indicators
  • Industry and Company Analysis
  • Approaches to Quality Evaluation
  • Introducing Technical Analysis

 

Weeks 6: Fundamental Valuation Analysis
  • Introducing Fundamental Analysis – Notions of Value
  • Comparables Valuation
  • Discounted Cash Flow Evaluation: Overview
  • DCF Building Blocks
  • Multi-stage DCF Models
  • Sustainable Growth
  • Efficient Markets – Theory
  • Efficient Markets – Evidence

 

  • Basic financial concepts
  • Financial statements and their elements
  • Various accounting standards with respect to the elements in the financial statements
  • Techniques to analyse the financial statements
  • Interpretation of financial statements for better decision-making

Executives, students pursuing post graduate and anyone who wants to upskill themselves on Financial Accounting.