The University of Southampton

MANG6029 Equity Markets

Module Overview

This module aims to provide students with practical knowledge of the equity markets (primary and secondary markets, and mergers and acquisitions activities), as well as an overall understanding in the theoretical foundation and empirical evidence with regard to portfolio theories, capital market theories and market efficiency. The combination of the practical and theoretical elements provides a full picture about how the real financial markets operate, how investors can reach ideal investment decisions, and whether the aggregate empirical evidence of the stock market is consistent with what theories suggest. This module takes a global perspective, from which we learn practices and empirical evidence from the developed markets, as well as the emerging markets.

Aims and Objectives

Module Aims

• This module aims to provide you with: • An understanding of the primary and secondary equity markets • An understanding of mergers and acquisitions activities • An appreciation for measuring and calculating risk and return • An understanding of mean-variance analysis and capital asset pricing models • An understanding of the theory on market efficiency and the basic idea of behavioural finance

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • The core areas of equity markets and equity finance;
  • The forms and motives of mergers, and the defensive tactics in hostile attempts;
  • The theoretical underpinning of asset allocation and portfolio management;
  • The supportive evidence and challenges to market efficiency
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Numeracy skills developed through exercises. Communication skills developed through a group work assignment. Analytical skills developed through case studies and an assignment.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Develop the ability to analyse critically theoretical material and case study evidence on the basis of an informed knowledge;
  • Obtain the capacity to develop logical and concise arguments and engage in independent enquiry grounded in appropriate source material.


• Topic 1. An introduction to equity markets • Topic 2. Mergers and acquisitions • Topic 3. Risk and return; portfolio analysis • Topic 4. Capital market theories (Capital Asset Pricing Model and Arbitrage Pricing Theory) • Topic 5. Efficient market hypothesis and behavioural finance

Learning and Teaching

Teaching and learning methods

Teaching methods include • 24 contact hours over a six-week period • Lectures account for 24 hours of contact time and are used to introduce individual topics and show examples • Lectures may involve video, case study and formal lecture using OHP. Learning activities include • Lectures may involve exercises, question and answer sessions, case studies, and class presentations

Independent Study126
Total study time150

Resources & Reading list

Hillier, D.; M. Grinblatt, and S. Titman (2011). Financial Markets and Corporate Strategy: European Edition. 

Bodie, Z., A. Kane, and A. J. Marcus (2013). Essentials of Investments. 

Brealey, R. and S. Myers (2013). Principles of Corporate Finance. 

Bodie, Z., A. Kane, and A. J. Marcus (2014). Investments. 

Hillier, D., S. Ross, R. Westerfield, J. Jaffe and B. Jordan (2012). Corporate Finance: European Edition. 

Fabozzi F. J., F. P. Modigliani, and F. J. Jones (2013). Foundations of Financial Markets and Institutions. 



Set exercises - non-exam


MethodPercentage contribution
Examination  (2 hours) 70%
Group Assignment  (4000 words) 30%


MethodPercentage contribution
Examination  (2 hours) 100%


MethodPercentage contribution
Examination  (2 hours) 100%
Share this module Facebook Google+ Twitter Weibo

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.