The equity market is a prominent member of the capital market and encapsulates the mechanisms and conventions that exist for the issuance of, investing in, and the trading of marketable equity instruments that represent the permanent or semi-permanent capital of the issuers (companies). The equity market plays a significant role in the economy. It provides perpetual capital and long-term capital. Needless to say, financial globalization has increased significantly during the last decade.
The increased integration of financial systems has involved greater cross-border capital flows, tighter links among financial markets, and greater presence of foreign financial firms around the world. For this very reason, it is important to comprehend the principal underpinnings of the equity market and how it links to or differentiates from other members of the capital market, i.e. long-term debt market and the money market.
This training course is a primer on the equity market and will build the knowledge and understanding of the participants through compact and practical training modules on the one hand and concrete real-world discussions on the other.
At the end of the course, the participants should be able to:
- State the definition, context, and essence of the equity market;
- Differentiate ordinary and preference shares as instruments of the equity market;
- Analyze the ownership distribution of equities in the generic market and analyze returns and risks;
- Compare and contrast the economic function of the primary market from the secondary market; and
- Explain the three approaches to valuation of equity namely: balance sheet valuation, discounted cash flow, and relative valuation approach.
Content and Structure
This course consists of the following modules:
- Module 1 Equity Market: Context and Essence
- Module 2 Equity Market: Instruments
- Module 3 Equity Market: Investors
- Module 4 Equity Market: Primary Market
- Module 5 Equity Market: Secondary Market
- Module 6 Equity Market: Mathematics (Valuation)
In order to ensure the best possible outreach, the course will be delivered through e-learning. Through a multiple-instructional setting, the goal is to achieve the learning objectives by means of learning technologies that match personal learning styles and by the inclusion of non-linear learning that aims at the development of just-in-time skills of adult learners. At the same time, in order to allow participants maximum flexibility of scheduling , the learning will be conducted in an asynchronous manner. Using a state-of-the-art training architecture, UNITAR will combine self-learning with assessments and online discussions. The pedagogy - adapted specifically to professionals in full-time work - will help train participants through various experiences: absorb (read); do (activity); interact (socialize); reflect (relate to one’s own reality).
The intended audience includes members and employees of securities exchanges, dealers in other parts of the financial sector, financial market analysts, economists, company treasury managers and dealers, employees of treasury management (outsourcing) companies, private sector bankers, central bankers, government treasury officials, officers of large investors, such as retirement funds, and trustees of retirement funds.