Security Analysis & Portfolio Management

Acknowledgements

PART 1  Indian Stock Market

1.  Introduction To Investment And  Securities : Investment, Speculation, Gambling and Investment, Investment Objectives, The Investment Process, Investment  Policy, Security Analysis, Valuation, Construction of Portfolio, Evaluation, Securities, Equity Shares, Sweat Equity, Non-voting Shares, Right Shares, Bonus Shares, Preference Stock, Debenture, Bond, Warrants, Investment Information, Summary, Questions, Multiple Choice Questions

2.  Investment Alternatives : Negotiable Securities, Non Negotiable Securities, Schemes of LIC, Mutual Funds, Other Classification, Basis for Selection, Real Assets, Real Estate, Art, Antiques, Summary, Questions, Multiple Choice Questions 

3.  New Issue Market : New Issue Market (Primary Market), Parties Involved in the New Issue, Government and Statutory Agencies, Collection Centres, Placement of the Issue, Pricing of New Issues, Allotment of Shares, Investors Protection in the Primary Market, Summary, Questions, Multiple Choice Questions

4.  The Secondary Market : History of Stock Exchanges in India, Functions of Stock Exchange, Regulatory Framework, The Stock Exchange, Types of Orders, Share Groups, Settlement Cycle, Price Filters, Margins, Recent Trends in the Margin, J.S. Varma Committee Report, Summary, Questions, Multiple Choice Questions

5.  Listing Of Securities : Merits of Listing, Demerits, Qualification for Listing, Listing of Right Shares, High Powered Committee Recommendation, Chandratre Committee Report (1997), Recent Developments, Summary, Questions, Multiple Choice Questions

6.  BSE, NSE, ISE, OTCEI And NSDL : Bombay Stock Exchange, The Trading System, Securities Traded, Surveillance System, Check on the BOLT Terminals, Protection Against Default, National Stock Exchange, Membership, Capital Market Segment, Types of Order, Volume Conditions, Advantages of NSE, Inter-connected Stock Exchange, Over the Counter Exchange of India, Market Making Concept, The Present Situation, National Securities Depository Limited, The Functioning, Transactions  of the NSDL, Summary, Questions, Multiple Choice Questions

7.  Stock Market Indices : Usefulness of Indices, Computation of Stock Index, Differences between the Indices, The BSE Sensitive Index, NSE-50 index (Nifty), Selection Criteria, CNX Nifty Junior, S & P CNX 500, Summary, Questions, Multiple Choice Questions

8.  The Securities And Exchange Board Of India : Objectives of SEBI, Functions of SEBI, Organisation of SEBI, SEBI's Role in the Primary Market, Secondary Market and SEBI, Mutual Funds and SEBI, SEBI and the FIIs, Critical Review of SEBI, Summary, Questions, Multiple Choice Questions

PART  II  Security Analysis

9.  Risk : Risk Defined, Systematic Risk, Unsystematic Risk, Minimising Risk Exposure, Risk Measurement, Summary, Questions, Multiple Choice Questions

10.  Bond Return And Valuation : Bond Basics, Bond Risk, The Time Value Concept, The Present Value, Bond Return, Yield to maturity, Bond Value Theorems,  Convexity, The Term Structure of Interest Rate (Yield Curve), Riding the Yield Curve, Duration, Immunisation, Summary, Questions, Multiple Choice Questions

11.  Stock Return And Valuation : Return, The Anticipated Return, Present Value of the Return, Multiple Year Holding Period, Constant Growth Model, Two Stage Growth Model, The Three-Phase Model, Valuation through P/E Ratio, Whitbeck Kisor Model, Preferred Stock Valuation, Summary, Review Problems, Questions, Multiple Choice Questions

12.  Fundamental Analysis : Economic Analysis, Industry Analysis, Company Analysis, Earnings of the Company, Financial Analysis, Growth in Earnings, Summary, Review Problems, Questions, Multiple Choice Questions

13.  Technical Analysis : Technical Analysis, Assumptions, History of Technical Analysis, Technical Tools, Dow Theory, Primary Trend, The Secondary Trend, Minor Trends, Support and Resistance Level, Indicators,Odd Lot Trading, Moving Average, Rate of Change, Charts, Technical Analysis and Fundamental Analysis, Summary, Questions, Multiple Choice Questions

14.  Efficient Market Theory : Basic Concepts, The Random-Walk Theory, Weak Form of EMH, A Study : Predictability of Stock Returns, Semi-strong Form, Strong Form, The Essence of the Theory, Market Inefficiencies, Summary, Questions, Multiple Choice Questions

15.  Options And Futures : Meaning, Factors Affecting the Value of Call Option, The Black-Scholes Option Pricing Model, Futures,  Forward and futures, Selection of Index for the Futures, Summary, Review Problems, Questions, Multiple Choice Questions

PART III  Portfolio Management

16.  Portfolio Construction : Approaches in Portfolio Construction, Determination of Objectives, Selection of Portfolio, Summary, Questions, Multiple Choice Questions

17.  Portfolio-Markowitz Model : Simple diversification, The Markowitz Model,  Risk and Return with Different correlation, Markowitz efficient frontier, Summary, Review Problems, Questions, Multiple Choice Questions 

18.  The Sharpe Index Model : Single index model, Corner Portfolio, Sharpe's Optimal Portfolio, Construction of the Optimal Portfolio, Optimum Portfolio with Short Sales, Summary, Review Problems, Questions, Multiple Choice Questions

19.  Capital Asset Pricing Theory And Arbitrage Pricing Theory : The CAPM theory, Assumptions, Arbitrage Pricing Theory, Summary, Review Problems, Questions, Multiple Choice Questions

20.  Portfolio Evaluation : Mutual Fund, Sharpe's Performance Index, Treynor's Performance Index, Jensen's Performance Index, Summary, Review Problems, Questions, Multiple Choice Questions

21.  Portfolio Revision : Passive Management, Active Management, The Formula Plans, Assumptions of the Formula Plan, Variable Ratio Plan, Revision and the Cost, Summary, Questions, Multiple Choice Questions

Appendix

Index