B40.3331 Coursepack:
Instructor-Prepared Notes and Exercises for B40.3331

The coursepack, titled "Readings in Equity Markets," will closely follow the in-class lectures. In a sense, the coursepack is intended to free the student from the burden of taking copious notes; the instructor would prefer to focus more on the content of the lecture material. Many students in the course will use the Coursepack as their primary text (a few may use the Coursepack as their only set of readings, though this is not recommended). There will be many exercises and problems in this coursepack. Students should be certain to understand all relevant readings in the Coursepack and be able to work through all relevant exercises. Solutions to exercises can be linked to below the chapters.

Students requiring review in mathematics or elementary finance should do so before the second week of the term (This is important). Comfort with all of the material in Chapters 2 and 3 of the Elementary Mathematics Review will be essential to this course. In addition, material covered in an introductory finance course  will be necessary for keeping up with the course. Material related to introductory finance may be obtained through Chapters 4 through 6 of the Elementary Mathematics Review . Material in Chapters 7 and 8 of the Elementary Mathematics Review might be helpful later in this course. End of chapter solutions are provided as well. Finally, many students will find readings that may be added from time-to-time on the Additional Readings page to be helpful for exam preparation or otherwise interesting. A separate page for exam preparation may also prove quite useful. There are links to sample exams as well.

The material below is provided in *.pdf format which can be downloaded by selecting the appropriate links. After downloading, you will need to access this material with Adobe Acrobat Reader . If you do not have this program, it can be downloaded without cost by linking to Adobe's site , selecting the "Get Acrobat Reader link" and following instructions. Feel free to report any difficulties to or obtain any needed assistance from John Teall .
 


I.    THE INVESTING ENVIRONMENT
A.    Introduction and Investment Objectives
B.    An Introduction to the Theory of the Firm
C.    The Market for Corporate Control
D.    Corporate Ownership Structure
E.    Securities: An Introduction
F.    Common Stock and Preferred Stock Characteristics
G.    Historical Performance of Stock and Other Securities

II.    THE MIND OF THE INVESTOR
A   Introduction to Market Efficiency
B.  Rational and Irrational Investor Paradigms
C.  Behavioral Finance
D.  The Consensus Opinion: Stupid Investors, Rational Markets?
E.  Stock Market Bubbles

III.    EQUITY MARKET STRUCTURE
A.  Investment Banking and Primary Equity Markets
B.  The IPO Anomalies
C.   Exchange Markets   
D.   Over the Counter Markets
E.   The Decline of Brick and Mortar?
F.   Foreign Stock Markets               
G.   Quotation, Inter-market, Clearing and Brokerage Systems
H.    Illegal, Unprofessional and Unethical Stock Market Behavior
I.     Regulation of Securities Markets

IV.    RANDOM WALKS, RISK AND ARBITRAGE
A.    Market Efficiency and Random Walks
B.    Risk
C.    Arbitrage
D.    Limits to Arbitrage

V.    TECHNICAL ANALYSIS AND WEAK FORM MARKET EFFICIENCY
A.    Technical Analysis for Stocks
B.    Weak Form Efficiency
C.    Back-testing Momentum and Mean Reversion Strategies

VI.    FUNDAMENTALS OF VALUATION
A.    Introduction to Common Stock Analysis
B.    Introduction to Fundamental Analysis
C.    Growth Models
D.    Setting the Discount Rate
E.    Financial Statement Analysis: An Introduction
F.    Ratio Analysis and Risk
G.    Misreading and Misleading Financial Statements
H.    Comparables-Based Valuation

VII.    ADDITIONAL ISSUES IN VALUATION
A.  Index Models
B.  Real Options and Equity
C.  Valuing a Merger
D.  The Firm’s Potential as an MBA Opportunity
E.  Governance, Votes and Valuation

VIII.    SEMI-STRONG FORM AND STRONG FORM MARKET EFFICIENCY
A.    Semi-Strong Form Efficiency
B.    Back Testing Announcement Strategies: The Event Study
C.    Insider Trading
D.    Strong Form Efficiency

IX.    STOCK SELECTION AND PORTFOLIO FIT
    A.  Portfolio Return and Risk
    B.  Stock Fit and Optimal Portfolio Weights                       
    C.  Internationalization of Equity Portfolios        
    D.  Equity Portfolio Performance Evaluation

X.    EQUITY DERIVATIVES
    A.  Derivatives: An Introduction
    B.  Plain Vanilla Equity Options
    C.  Hybrid Equities: Warrants and Convertibles
    D.  Equity and Index Futures
    E.  Other Equity Derivatives

XI.    APPENDICES
   A.  Review of Topics in Foundations of Finance
   B.  Tables
 
B40.3331: Equity Instruments and Markets News
Download Adobe Acrobat Reader Send an e-mail to John Teall
 
Teaching and Courses B40.3331 HOME
updated 06/03/07