154-0574/01 – Capital Markets: Equity Investments (CMEI)

Gurantor department	Department of Finance	Credits	6
Subject guarantor	Ing. Martina Novotná, Ph.D.	Subject version guarantor	Ing. Martina Novotná, Ph.D.
Study level	undergraduate or graduate	Requirement	Compulsory
Year	2	Semester	summer
		Study language	English
Year of introduction	2024/2025	Year of cancellation
Intended for the faculties	EKF	Intended for study types	Bachelor

Instruction secured by
Login	Name	Tuitor	Teacher giving lectures
KOR21	Ing. Kateřina Kořená, Ph.D.
NOV33	Ing. Martina Novotná, Ph.D.

Extent of instruction for forms of study
Form of study	Way of compl.	Extent
Full-time	Credit and Examination	3+2

Subject aims expressed by acquired skills and competences

The objective of this course is to provide an understanding of key concepts related to equity investments. After completing the course, the students will be able to: • Discuss the markets organization and their main participants, • define the use and calculation of security market indexes, • describe the key concept of market efficiency and behavioural finance, • characterize different types of equity securities in global financial markets, • assess risk and returns characteristics of equity securities, • explain and apply industry and company analysis, • understand and practically use the basic methods of equity valuation.

Teaching methods

Lectures
Tutorials
Teaching by an expert (lecture or tutorial)

Summary

This course is focused on providing the main theoretical concepts and practical skills related to investing in equities, analyzing stocks, and formulating investment recommendations. The lectures aim to clarify the main principles and methods, while the seminars focus on the application of acquired knowledge through case studies, practical exercises, and projects focused on fundamental analysis.

Compulsory literature:

BAKER, H. Kent, Greg FILBECK and Halil KIYMAZ. Equity markets, valuation, and analysis. Hoboken: 2020, Wiley. ISBN 9781119632948. BODIE, Zvi, Alex KANE and Alan J. MARCUS. Investments. 12th ed. New York: McGraw Hill, 2021. ISBN 978-1-260-57115-8. REILLY, Frank K., Keith C. BROWN and Sanford. J. LEEDS. Investment analysis and portfolio management. 11th ed. Boston: Cengage, 2019. ISBN 978-1305262997.

Recommended literature:

BAKER, H. Kent, Greg FILBECK and John R. NOFSINGER. Behavioral finance: what everyone needs to know. New York, NY: Oxford University Press, 2019. ISBN 9780190868758. CALHOUN, George. Price and Value: A Guide to Equity Market Valuation Metrics. Jersey City: Apress, 2020. ISBN 978-1-4842-5551-3. LAOPODIS, Nikiforos. Understanding investments: theories and strategies. 2nd ed. London: Routledge, Taylor & Francis Group, 2021. ISBN 978-1000074741

Way of continuous check of knowledge in the course of semester

Credit assessment (case study), elaboration and submission of a project, written exam

E-learning

Other requirements

There are no additional requirements for a student.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Equity market organization and structure • Classification of assets and markets, • main market participants and financial intermediaries, • trading fundamentals (types of positions and orders) • primary and secondary markets (public offerings, securities regulation). 2. Market efficiency • The concept and definition of market efficiency, • forms of market efficiency (weak, semi-strong, strong), • equity market anomalies, violation of the EMH • behavioural finance (investor psychology, types of behavioural biases). 3. Overview of equity securities • Security market indexes (index definition and construction), • Types of equity indexes and their use (measuring returns, benchmarks), • types and characteristics of equity securities (types of shares, depository receipts), • risk and return (sources of risk and return, calculation). 4. Equity valuation: Global, industry and company analysis • Fundamental analysis and its main objectives, intrinsic value, • global analysis (macroeconomic analysis), • the role of industry analysis (business-cycle sensitivities), • company analysis (financial statement analysis). 5. Equity valuation: Intrinsic Value Calculation • Equity valuation approaches and their comparison, • discounted dividend valuation (Gordon model, multistage models), • market-based valuation (multiplier models), • asset-based valuation and other approaches.

Conditions for subject completion

Full-time form (validity from: 2024/2025 Winter semester)

Task name	Type of task	Max. number of points (act. for subtasks)	Min. number of points	Max. počet pokusů
Credit and Examination	Credit and Examination	100 (100)	51
Credit	Credit	45	23
Examination	Examination	55	28	3

Mandatory attendence participation: Participation in lectures and seminars is not mandatory.

Show history

Conditions for subject completion and attendance at the exercises within ISP: Participation in the seminars is not mandatory. The student must meet the requirements for completing the subject - credit (successful completion of the credit test), submission of the project and successful completion of the written exam. Attendance at lectures is optional.

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Occurrence in study plans

Academic year	Programme	Branch/spec.	Spec.	Zaměření	Form	Study language	Tut. centre	Year	W	S	Type of duty
2024/2025	(B0412EKF015) Financial and Accounting Advisory			FA	P	English	Ostrava	2			Compulsory	study plan

Occurrence in special blocks

Block name	Academic year	Form of study	Study language	Year	W	S	Type of block	Block owner

Assessment of instruction

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