User:Teemc72/InvestmentManagement

The Equity Market

Overview

The lesson starts by introducing students to the characteristics of common stocks, types of common stocks in Malaysian and Bursa securities regulation. Next, students will learn how to apply fundamental and technical analysis in the equities market. The main purpose is to obtain intrinsic value of the equities.This will be complemented by macro analysis of the country such as GDP, inflation and employment variables.

Objectives

By the end of lesson 1, learners should be able to: Discuss the characteristics of common stocks. Discuss types of equities instruments, Bursa and securities regulation in Malaysia. Analyze intrinsic value of common stock using the discounted cash flow and relative valuation technique. Conduct macro analysis. Perform technical analysis.

Course Structure

1.0 Common Stock

1.1 Characteristics of common stock

1.2 The Malaysian stock market

1.3 Bursa Regulation and supervision

2.0 Risk

2.1 Risk adverse principle

2.2 Expected return

2.3 Variance

2.4 Standard deviation

2.5 Portfolio variance and standard deviation

2.6 Diversification

3.0 Valuation

3.1 Discounted cash flow

3.2 Relative valuation technique ratio

3.3 Macro Analysis

3.4 Micro Analysis: Company Analysis

4.0 Technical Analysis

4.1 Japanese Candlestick

4.2 MACD

Activity

References

Text:

• Reilly, F K and Brown, K (2006) Investment Analysis and Portfolio Management, 8th edn, South Western: Thomson. (ISBN 978-0-324-40789-1)*

Websites:

• http://money.cnn.com/
• http://www.bloomberg.com/?b=0&Intro=intro3
• http://www.theedgedaily.com/cms/index.jsp