Introduction to Capital Markets

Price: $1695   Register now

Course Features

  • Course Code: 402
  • Certificate: Yes
  • CPE Credits: 14
  • Level: Beginner
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Registration: 8:30 am
  • Dress Code: Business Casual

Course Objective

The objective of this two day course is to provide an overview of the major capital markets and their investment roles. The overview will include key financial principles, players, and risk/reward considerations. Deeper analysis on asset valuation approaches will be discussed. Specific calculations and case examples will be done in the asset classes of equities, fixed income, derivatives, FX, and Alternative Investments. Investments and their roles in client portfolios will be discussed. This should enrich the learning experience and provide knowledge to be applied to the current investment environment.

Target Audience

This course is particularly appropriate for professionals who wish to broaden knowledge of financial markets, wish to have a concise refresher course, and may seek further financial training

 

Objectives

By the end of the two days, participants will be able to:

  • Describe key functions of the key capital markets
  • Understand the role of key players
  • Understand equity bond markets mechanisms and their pricing of bonds
  • Understand the role and pricing approaches used in derivatives, commodities and FX
  • Evaluate risk and reward tradeoffs for various types of investors
  • Understand the role of regulations, brand, management, liquidity, taxes, raising capital
  • Understand key financial products and their characteristics that are available to investors
  • Understand and discuss the current investment environment

 

Day 1: 

 Session 1: Overview of Capital Markets

  • Functions of the world’s capital markets
  • Risk and reward considerations
  • Types of banks: Investment vs Commercial banks
  • Buy-side vs Sell-side banks
  • Key players in the financial community

 Session 2: Types of Banking

  • Lending compared to Investing
  • Investment Banking and Corporate Finance – Capital Raising, Advisory, Treasury and Trading
  • Capital Markets – Debt securities, Equity securities, Capital Market mechanisms
  • Role of portfolio management, investment objectives
  • Discussing investments for various client types

Session 3: Fixed Income Investments

  • Fixed Income basics
  • Bond mechanism
  • Different Types of Fixed Income Investment
  • Corporate Bonds and credit ratings – importance of the rating agencies
  • Discuss how past credit problems arose and risks facing bond holders

Session 4: Equity Investments

  • Equity basics
  • Role of equity compared to debt Primary Markets, Listing, Markets, Indices and Mechanisms
  • Secondary Markets – What influences the share price?
  • Trading Equities, approaches from touch to algo, order types
  • The New Issue process, bookbuild, road shows, IPO, private placement, tenders
  • Discussion of capital raising and equity risks

Session 5: Overview of Other Financial Products

  • The Foreign Exchange Markets and Products
  • Commodities Trading – Markets, Participants and Products
  • An Introduction to Derivatives – Futures, Forwards, Swaps and Options
  • Alternative Investments
  • Discussion of role of Alternative Investments in a portfolio of traditional stock and fixed income investments

 

Day 2: 

 Session 1: Fixed Income Investments – Pricing

  • Bond math pricing
  • What affects a Bond’s price and yield
  • Yield to maturity, spot rates, forward rates
  • Calculating and evaluating the role of Duration analysis?
  • Bond calculations will be done

Session 2: Equity Investments – Valuation

  • An overview of absolute vs relative valuation methods
  • Discounted cash flow analysis
  • Role of investment period, terminal value, cost of capital, forecasts
  • Discussion of cash flow creation and its challenges
  • Enterprise value, market capitalization, key financial ratios
  • Influences of management styles, corporate strategy and capital structures, brand value and economic conditions
  • Discussion of some prominent stocks in the news and their valuation issues

 

Final Session: Putting It all Together

  • Discussing financial capital raise and valuation approaches for various types of companies
  • Deciding on the financial requirements of a client company
  • Suggesting appropriate investments to various client return/risk objectives over a time horizon
  • Discussion whether the stock market is cheap or expensive
  • Understand ways to hedge risk
  • Industry trends and career choices

Instructor

  • V. John Palicka CFA CMT  has over 30 years of experience in researching and managing money in global, emerging, and US small-cap stocks.  He is currently in his 27th year as President and Chief Portfolio Manager at Global Emerging Growth Capital (GEGC). GEGC provides three major financial services: asset management, corporate finance, and knowledge consulting …
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