Financial Markets and Instruments

Types of markets; Financial Instruments; Types of investment avenues

Primary Markets

Initial Public Offerings (IPO); Book building; Pricing of issues; Allotment of shares; Basis of allotment; Listing of securities; credit rating

Secondary Market

Role and functions of SEBI, Depositories, Stock exchanges; Membership, Registration Procedure, Method of Trading in a Stock Exchange; Clearing settlement and risk management. Methodology of index calculation.

Government Securities Market

Indian debt market; Primary market; Secondary market; Negotiated Dealing Systems; Wholesale debt market

Introduction

Steps in fundamental analysis; Impact of corporate actions; Macro Economic Environment; Time Value of Money; Elementary Statistical Concepts

Understanding to Financial Statements

Financial statement analysis; Ratio Analysis; Du-Pont analysis

Valuation Methods

Top down valuation; Discounted Cash Flow (DCF) models; Ratio based valuation; Enterprise value; Valuation and case studies

Introduction

Technical approach of trading and investing; The Dow Theory

Charts

Types of Charts; Data requirements

Trends

Major trend lines; Major trend channels Support & Resistance Definition; Roles of support and resistance; Tests for determination; Importance of volume

• Important Reversal Formations
• Consolidation Formations
• Technical Indicators
• Trading Tactics

Introduction

Types of derivatives instruments; Forward contracts; Futures; Options; Swaps

Stock Futures

Advantages of stock futures; Participants of stock futures; Pricing of stock futures; Trading strategies using stock futures

Index Futures

Index futures contracts in India; Hedging price risk with index futures; Spreads

Options

Types of options contract; Intrinsic value and time value; Options pricing; Factors affecting price of options; Put-Call parity; Greeks and their usage in risk management; Options trading strategies