DEPARTMENT OF COMMERCE

CERTIFICATE COURSE ON

FINANCE AND INVESTMENT MANAGEMENT

Total Number of Lecture Hours : 40

OBJECTIVES:

• to create awareness about the basic financial concepts
• To develop a thorough understanding of process of investment.
• To familiarize the students with the stock markets in India.
• To provide insight about the relationship of the risk and return and how risk should be measured to bring about a return according to the expectations of the investors.
• To familiarise the students with the fundamental and technical analysis of the diverse investment avenues

 

Module 1: (Theory)

BASIC CONCEPTS OF FINANCIAL MANAGEMENT

Meaning of Finance, meaning and definition of Financial Management, Importance of Financial Management, Scope of Finance functions, Objectives of Financial Management, Financial Management Process, Functions of a Finance Manager.   Time value of money, Capital Structure, Cost of Capital, Dividend Policy, Bonus Shares, Sources of long term finance- shares, debentures and long term loans                                                                                       (12 Hours)

 

Module 2: (Theory)

INVESTMENT

Attributes, Economic vs. Financial Investment, Investment and speculation, objectives of investment, Features of a good investment, Investment Process, investment avenues. Financial Instruments: Money Market Instruments, Capital Market Instruments, Derivatives.                                                                                                                                                               (7 Hours)

 

Module 3: (Theory)

SECURITIES MARKET

Primary Market, Secondary Market- Major Players in the secondary market, Functioning of Stock Exchanges. Stock Market Indicators- Types of stock market Indices, Indices of Indian Stock Exchanges.          Dealings in Stock Market  -Cash segment and derivatives segment. Procedure for opening Demat a/c

(7Hours)

 

Module 4:(Theory)

MACRO-ECONOMIC AND INDUSTRY ANALYSIS

Fundamental analysis- Global Economy, Domestic Economy, Business Cycles, Industry Analysis. Company Analysis- Financial Statement Analysis, Ratio Analysis. Technical Analysis – uses, Charts-Types, Trend and Trend Reversal Patterns. Mathematical Indicators – Moving averages, ROC, RSI, and Market Indicators.

(10 Hours)

Module 5: (Theory & Problems)

RISK AND RETURN ANALYSIS

Concept of Risk, Types of Risk- Systematic risk, Unsystematic risk,

Calculation of Risk and returns (basic problems)                                                            (4 Hours)

 

REFERENCE BOOKS:

1. Investment Analysis and Portfolio management – Prasanna Chandra, 3/e, TMH, 2010.
2. Investments – ZviBodie, Kane, Marcus & Mohanty, 8/e, TMH, 2010.
3. Investment Management – Bhalla V. K, 17/e, S.Chand, 2011.
4. Security Analysis & Portfolio Management – Fisher and Jordan, 6/e, Pearson, 2011.
5. Security Analysis & Portfolio Management – Punithavathy Pandian, 2/e, Vikas, 2005.
6. Investment Management – Preethi Singh, 17/e, Himalaya Publishing House 2010.
7. Security Analysis & Portfolio Management- Kevin S, PHI, 2011.
8. Fundamentals of Investment – Alexander, Sharpe, Bailey, 3/e, PHI, 2001.
9. Security Analysis & Portfolio Management – Nagarajan K & Jayabal G , 1st Edition, New Age international, 2011.
10. Security Analysis & Portfolio Management – Avadhani V. A, HPH.