Capital Markets: Products, Risks and Strategies
This course surveys the major financial instruments traded in capital markets around the world. Understand how stocks are valued. Learn how stocks and bonds are brought to market. Understand the basic mechanics and risks characteristics of derivatives.
CPE Credits: 21
This course is the second component of the Capital Markets Professional Certificate.
Prerequisite knowledge:
- Basic MS Excel skills
- Basic knowledge of capital market structure and participants
Recommended Courses:
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To make it even easier to learn, you can finance your program through Affirm.
Loans offered through Affirm are available in the U.S. and Canada.
Module 1: Equity Indexes
- Market Segmentation
- Index Construction and Weighting
- Bias, Tracking Error and Rebalancing
- Trading and Hedging Strategies using Index Products
Module 2: Equity Valuation
- Uses and Limitations of Valuation
- Valuation Models
- Model Inputs
- Ratio Analysis
- Intrinsic Valuation
- Relative Valuation
- Equity Risk Premium
- Dividend Discount Models
- Method of Comparables
- Enterprise Value and Economic Value Added (EVA)
- Oracle Valuation Case
Module 3: Equity Investment Vehicles
- Mutual Funds
- Hedge Funds
- Private Equity
- Venture Capital
Module 4: Introduction to Derivatives
- Characteristics of Derivatives
- Hedging and Speculative Uses
- ISDA Framework and Regulation
Module 5: Futures and Forwards
- Futures and Forwards Markets
- Exchanges, Clearinghouses and OTC
- Hedging and speculating with Futures
- Trade Execution
- Settlement and Margining
- Bond Futures
- Index Futures
Module 6: Swaps
- History and Evolution of Swaps
- Characteristics & Features of Swaps
- Fundamentals of Pricing Interest Rate Swaps
- Application of Interest Rate Swaps to Hedging Situations
- FX Swaps
Module 7: Options
- History and Evolution of Options Market.
- Options Terminology
- Evaluate Risk/Reward - Payoff Profiles & Break-Evens
- Identify Basic Characteristics of options, caps & floors and swaptions
- Identify Factors of Options Pricing
Module 8: Credit Derivatives
- Define and Identify Credit Derivatives
- Total Return Swaps and Credit Default Swaps
- Identify Mechanics of Basket and Portfolio Credit Default Swaps
Module 9: Equity and Bond IPO Participants
- Company Management
- Board of Directors
- Counsel
- Independent Accountants
- Pre-IPO shareholders
- Managing Underwriters
- Underwriter’s Counsel
- Research Analysts
- SEC
- Corporate Bond Issuance
Module 10: Timing and Major Steps in IPO Process
- Pre-Organizational Meeting
- Organizational Meeting
- Post-Organizational Meeting