The University of Southampton
Courses

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.
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:

  • Numeracy skills developed through exercises. Communication skills developed through a group work assignment. Analytical skills developed through case studies and an assignment.

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.

TypeHours
Independent Study126
Teaching24
Total study time150

Resources & Reading list

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

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

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

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

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

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

Assessment

Formative

Questions and answers

Summative

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

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%

Repeat Information

Repeat type: Internal & External

Costs

Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the core/recommended text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.

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