FINANCIAL SECURITIES ANALYSIS

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN324992
Module Leader Sanjukta Brahma
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimesters
  • A (September start)
  • B (January start)
  • C (May start)

Pre-Requisite Knowledge

None

Summary of Content

The module aims to develop a critical awareness of the financial risks inherent in financial markets and analyse the products which are used to manage these risks. The module will be split into 3 sections. The first section will consider portfolio theory as an introduction to risk, risk aversion, capital allocation between risky assets and risk free assets and then look at the optimal risky portfolio. Section 2 will build upon this by analysing the Capital Assets Pricing Model and Arbitrage Pricing Theory. Section 3 will then move onto an analysis of the financial products utilised concentrating on options, futures, swaps and securitisation.

Syllabus

-360-2582 1. Introduction to financial markets, asset classes -360-2582 2. Bond Market 3. Bond Valuation and Equity valuation 4. Initial Public Offering -360-2582 5. Payout policy -360-2582 6. Portfolio Theory 7. Options Market 8. Options pricing 9. Futures market 10. Market Efficiency 11 Capital structure theory

Learning Outcomes

On successful completion of this module, the student should be able to:1. Comparative analysis of the different types of fund management highlighting advantages and disadvantages.2. Critically analyse the methods of asset pricing available.3. Discuss the merits of the various academic theories of asset pricing.4. Create and justify the selection of various investment portfolios.5. Discuss the derivatives market

Teaching / Learning Strategy

In line with the general aims of both the MSc International Banking Finance and Risk Management programme, and GSBS more generally, the learning outcomes of this module are delivered within a context of encouraging responsible leadership, an international perspective, and professionalism, through engaging students in the analysis, research and discussion of contemporary, real life issues. For students other than distance learning students, contact will normally be two hours of lectures and one hour of seminar each week. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students will be then expected to prepare for following week 's seminar on each topic by engaging in literature searches, undertaking relevant reading and preparing responses to discursive and, where necessary, computational questions. In some cases, students will be asked to prepare work in advance of the lecture to facilitate a more interactive approach to the lecture, providing the basis for deepening professional skills, knowledge and understanding. Seminars will be conducted in workshop format providing the opportunity for student led and group task learning, with the aim of enhancing to enhance intellectual, critical and analytical skills, as well as common good attributes of leadership and responsibility. In the case of Distance Learning students, course materials will include interactive prompts and opportunities for reflection to allow the students to identify and engage with important learning points and issues arising in the course material. Module tutors will also make use of podcasts to emphasise important issues and learning points, or explain problematic issues that arise either face-to-face or online, to all students. Extensive will be made of VLE to enhance the learning experience and engagement of all students on the module. One purpose of the VLE is as a repository for resources including key readings such as scanned material, journal articles, book chapters, digital book chapters, web-links, and embedded video clips. It is also a site of interactivity between all students, using the discussion board, blogs and online student groups to encourage discussion, analysis and reflection on the course content, as well as interpersonal and communication skills.

Indicative Reading

Essential Reading: Bodie, Kane, Marcus,(2009),Investments (8th Ed.) - Boston- McGraw Hill. Recommended Reading: Solnik and McLeavey, Global Investments, 6 th Edition, Pearson Haugen et al. (2001), Modern Investment Theory with Options - 5th Ed. - New Jersey, Prentice Hall. Fabozzi. F.J. (1998),Investment Management - 2nd Ed. - New Jersey, Prentice Hall. Hirschey. M, (2002), Investments Theory and Practice of Investment Management - Fort Worth - Harcourt. Lofthouse, S. (2001), Investment Management - Chichester - Wiley Damodarn, A., (2006), Security Analysis for Investment and Cash Finance - New York - Wiley Damodarn, A. (2001), Investments and Valuations - New York - Wiley Burnstein (2001), Investment Management and Security Analysis - New York - Wiley Fabozzi et al. (2006), Advanced Bond Portfolio Management - New York - Wiley Websites: http://www.aaii.org http://www.bloomberg.com/ European Central Bank: www.ecb.int Bank for International Settlements: www.bis.org Bank of England: www.bankofengland.co.uk British Bankers Association: www.bba.org.uk Chartered Institute of Bankers: www.cib.org.uk Financial Times: www.ft.com Economist: www.economist.com Financial Services Authority: www.fsa.gov.uk Journals: European Financial Management. Financial Management Financial Markets, Institutions in Markets Journal of Alternative Investments Journal of Corporate Finance Journal of Finance Journal of Financial Economics Journal of Financial Intermediation Journal of Financial Markets Journal of Financial and Quantitative Analysis Journal of Financial Research Journal of Fixed Income Journal of International Money and Finance Journal of Investing Journal of Portfolio Management Journal of Risk Finance The Review of Financial Studies Securities and Investment Review

Transferrable Skills

After completion of the course students will have developed the following transferable skills: - analytical and numerical ability; - clear communication, in both written and oral form; - the ability to work independently; - IT skills; - research skills in order to complete coursework.

Module Structure

Activity Total Hours
Seminars (FT) 12.00
Independent Learning (FT) 84.00
Independent Learning (FDL) 84.00
Lectures (FT) 24.00
Lectures (FDL) 24.00
Assessment (FT) 30.00
Assessment (FDL) 30.00
Seminars (FDL) 12.00

Assessment Methods

Component Duration Weighting Threshold Description
Report n/a 55.00 45% Report based on topics from the syllabus 2500 words
Continuous Assessments n/a 45.00 45% Continuous Assessments (Online tests week 4, 8 and 12)