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
Learning Outcomes
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.
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- develop numeracy skills through exercises. Communication skills developed through a group work assignment. Analytical skills developed through case studies and an assignment.
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- the forms and motives of mergers, and the defensive tactics in hostile attempts;
- the core areas of equity markets and equity finance;
- the supportive evidence and challenges to market efficiency.
- the theoretical underpinning of asset allocation and portfolio management;
Syllabus
- 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.
| Type | Hours |
|---|---|
| Independent Study | 126 |
| Teaching | 24 |
| Total study time | 150 |
Resources & Reading list
Textbooks
Brealey, R. and S. Myers (2013). Principles of Corporate Finance. McGraw-Hill.
Fabozzi F. J., F. P. Modigliani, and F. J. Jones (2013). Foundations of Financial Markets and Institutions. Pearson.
Hillier, D.; M. Grinblatt, and S. Titman (2011). Financial Markets and Corporate Strategy: European Edition. McGraw-Hill.
Hillier, D., S. Ross, R. Westerfield, J. Jaffe and B. Jordan (2012). Corporate Finance: European Edition. McGraw-Hill.
Bodie, Z., A. Kane, and A. J. Marcus (2013). Essentials of Investments. McGraw-Hill.
Bodie, Z., A. Kane, and A. J. Marcus (2014). Investments. McGraw-Hill.
Assessment
Formative
Formative assessment description
Individual Coursework Questions and answersSummative
Summative assessment description
| Method | Percentage contribution |
|---|---|
| Individual Coursework | 100% |
Referral
Referral assessment description
| Method | Percentage contribution |
|---|---|
| Individual Coursework | 100% |
Repeat
Repeat assessment description
| Method | Percentage contribution |
|---|---|
| Individual Coursework | 100% |
Repeat Information
Repeat type: Internal & External