Security analysis and portfolio management pdf notes
[PDF] Security Analysis & Portfolio Management (SAPM) Notes & eBook for MBA Finance | StudynamaIT Skills. Management Skills. Communication Skills. Business Skills. Digital Marketing Skills.
Security Analysis and Portfolio Lecture, BBA, MBA by Ms. Richa Khunteta.
Security Analysis and Portfolio Management
Security analysis is the analysis of tradeable financial instruments called securities. It deals with finding the proper value of individual securities i. These are usually classified into debt securities, equities , or some hybrid of the two. Tradeable credit derivatives are also securities. Commodities or futures contracts are not securities. They are distinguished from securities by the fact that their performance is not dependent on the management or activities of an outside or third party. Options on these contracts are however considered securities, since performance is now dependent on the activities of a third party.
Debt Securities: Tradable assets which have clearly defined terms and conditions are called debt securities. Financial instruments sold and purchased between parties with clearly mentioned interest rate, principal amount, maturity date as well as rate of returns are called debt securities. Equity Securities: Financial instruments signifying the ownership of an individual in an organization are called equity securities. Derivatives: Derivatives are financial instruments with specific conditions under which payments need to be made between two parties. The analysis of various tradable financial instruments is called security analysis.
1. Introduction, Financial Terms and Concepts
Save extra with 3 Offers. It begins with an introduction to the investment process and the risk involved in it and then explains the different methods of security analysis such as Fundamental Analysis including economy, industry and company analysis , Technical Analysis and Random Walk Theory including Efficient Market Hypothesis. The valuation of securities such as shares and bonds is illustrated with examples. The securities market environment and the trading system in India are also discussed in sufficient detail. The different phases of Portfolio Management such as portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation are explained in separate chapters. The book also provides an introduction to Derivative Instruments in four chapters.