Equity Markets | MANG6029 | University of Southampton

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.

Knowledge and Understanding

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

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

Transferable and Generic Skills

Having successfully completed this module you will be able to:

Communicate complex ideas and arguments fluently and effectively in a range of different formats to a variety of different audiences

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.

Study time
Type	Hours
Teaching	24
Independent Study	126
Total study time	150

Resources & Reading list

Textbooks

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

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.

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

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

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

Assessment

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

Questions and answers

Summative

This is how we’ll formally assess what you have learned in this module.

Breakdown
Method	Percentage contribution
Examination	100%

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Breakdown
Method	Percentage contribution
Examination	100%

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Breakdown
Method	Percentage contribution
Individual Coursework	100%

Repeat Information

Repeat type: Internal & External