Module 1 Equity Market: Context
A description (including illustrations) of the elements that
constitute financial system is presented. This is the setting
of the equity market, the definition of which is dissected in
Module 2 Equity Market: Instruments
This module presents a detailed description of the characteristics
of the two varieties of shares: ordinary shares and preference
shares. It also covers the negotiable instruments that represent
equity, such as letters of allocation and warrants.
Module 3 Equity Market: Investors
In this module the ownership distribution of equities in the
generic market is presented, including the motivation for holding
equity. The statutory environment is then touched upon, followed
by the various measures of return and other concepts of return
such as the risk-free rate and the required rate of return. The
counterpart of return, risk, is then dissected.
Module 4 Equity Market: Primary
This module starts with the economic function of the primary
equity market. The "listing" of equity is then given
prominence, including issues such as motivation, advantages and
disadvantages, requirements, methods, steps, the prospectus, underwriting
and so on.
Module 5 Equity Market: Secondary
This is the market that (almost) everyone knows so well, and
the market where human behavioural patterns are played out repeatedly,
causing (with other factors) the inevitable cycle. Issues covered
here include: economic significance, structure, participants,
trading, clearing and settlement, indices, efficiency and so on.
Module 6 Equity Market: Mathematics
Valuation of equity is a significant issue because buying or
selling equity is (or should be) based on the fair value price
(FVP) of the relevant security. Here we cover the three approaches
to valuation: balance sheet valuation approach, discounted cash
flow approach and relative valuation approach.