ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title Equity and Fixed Income
Code MGTK754
Coordinator Dr C Wese Simen
Finance and Accounting
C.Wese-Simen@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 7 FHEQ Whole Session 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours           14

4

18
Timetable (if known)              
Private Study 132
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Group written assignment Reassessment Opportunity: individual assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: No  -2000 words    40       
Individual report Reassessment Opportunity: new assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes  -2000 words    60       

Aims

The module aims to:
Equip students with the tools to analyse the different methods of issuing equity and fixed-income securities;

Enable students to critically evaluate the functioning of the primary and secondary markets;

Provide students with the knowledge of methodologies used to price equity and fixed income securities;

Develop students’ ability to evaluate the risk inherent in the trading of equity and fixed-income securities.


Learning Outcomes

(LE1) Flexible and adaptable.
Students will understand that the finance sector is fast-changing and influenced significantly by worldwide events as well as technological advancements. The module will equip students with techniques, knowledge and confidence required to face these challenges through the use of varied learning and assessment methods used, such as case studies.

(LE2) A team player.
Some assessed work will require students to work in virtual groups and manage the interaction and relationships with other group members. In doing so, they will gain experience in negotiation, persuasion, influencing and managing conflict. This will be assessed as part of the group assignments.

(LE3) An excellent verbal and written communicator.
Students will have opportunities to develop communication skills through virtual group discussions and coursework.

(LE4) Internationally aware.
Our teaching and research community is drawn from around the world and our students are exposed to business ideas and cultures from beyond the UK. Furthermore, online delivery will enable a collaborative approach with other practitioners from diverse international backgrounds, enabling a richer experience.

(LE5) A leader.
We instil students with the understanding and confidence to explore and develop their own leadership approach and development needs.

(LO1) Students will be able to demonstrate a systematic understanding, knowledge and critical awareness of the nature of equity securities and current professional practice related to equity markets.

(LO2) Students will be able to apply and critically appraise fundamental analysis to the valuation of equity securities.

(LO3) Students will be able to demonstrate a conceptual understanding of the principles underlying the equity markets and equity security valuation, including hybrids at the forefront of current practice.

(LO4) Students will be able to demonstrate a systematic understanding, knowledge and critical appraisal of professional practice related to fixed income securities.

(LO5) Students will be able to apply knowledge and understanding of applied techniques and methods to analyse yields, risks and valuation for fixed income securities in an uncertain context.

(LO6) Students will be able to demonstrate a conceptual understanding of the principles underlying the yields, risks and valuation of fixed-income securities and the application of current valuation techniques.

(LRE1) A problem solver.
Students will be challenged to think critically about current issues in securities markets. They will do this by gathering and synthesising information, analysing alternative perspectives and options and presenting a considered opinion or course of action in their assessment.

(LRE2) Numerate.
Students will be required to demonstrate a good level of numerical application across the syllabus through the assessments set.

(LRE3) Commercially aware.
The subject matter will be delivered by reference to real-world events. Students will be required to demonstrate the implications and impacts of these events on these subject areas. Students will also be required to share their commercial experiences in group tasks, where appropriate.

(LRE4) Organised and able to work under pressure.
Students will be expected to plan scheduled work and meet assessment deadlines. This will be evident in the students’ independent management of their assignments and assessment deadlines.

(LRE5) IT literate.
Students will have opportunities to improve their IT skills. Students will demonstrate skills in the use of software applications including word processing, visual presentations, databases, spreadsheets and using the internet for information searches in the course of researching and presenting coursework. The nature of the module in terms of online delivery will enable students to develop skills in using a virtual learning/communications environment.

(LRE6) A lifelong learner.
The module will embed key finance skills and an awareness which will continue to grow as students are exposed to future experiences in their careers.


Teaching and Learning Strategies

The module will be primarily delivered through 8 weekly e-lectures with one core topic covered each week. The key concepts, theories, and applications, will be delivered through a variety of methods including lecture cast. Case studies and media clips will be used to help illustrate the real-world applications of the key concepts. The teaching will also be supported by individual online activities. These include self-assessment quizzes that enable students to evaluate their own learning and receive formative feedback instantaneously. Furthermore, discussion boards will be used to further foster the exchange of ideas, thus deepening the knowledge of students and improving their communication skills. These activities will be moderated by the module instructor. Students will also be directed to key academic and practitioner readings to further develop their learning.

Unscheduled directed student hours: 14 hours
Description: The e-lectures will equate to 1.25 hours/week over 8 weeks undertaken asynchronously.
Attendance Recorded: Yes – tracked via the learning platform.

Students will undertake 4 hours of synchronous activity over the 8 weeks in order to consolidate their knowledge and appreciate the practical applications of the subject matter. This will take place through group and individual sessions which will be moderated by the module instructor.

Scheduled directed student hours: 4 hours
Description: These group and individual sessions will equate to 4 hours over 8 weeks, undertaken synchronously. The dates and times of these sessions will be provided at the start of the module. Recordings of these sessions will be made available to students who are unable to attend.
Attendance Recorded: Yes – tracked via the learning platform.

Self-directed learning hours: 132 hours
Description: This will involve directed and independent reading, independent research, and preparation for assessment.


Syllabus

 

The equity section of this module explores:

Characteristics of equity markets and trading mechanisms: IPOs and secondary market trading.

Industry and company analysis: peer group, analysis of threats/opportunities.

Equity valuation: Fundamental valuation (present value models) vs Relative valuations (comparables).

The risk of equity investments: market risk and liquidity risk.

The fixed income section of this module explores:

Characteristics of fixed-income markets and trading mechanisms: Bond indenture, primary market, and secondary market.

Valuation of fixed-income securities: theories of valuation, day count convention, accrued interest, clean and dirty prices, current yields, holding period return, realized compound return.

Term structure of interest rates: Bootstrapping the term-structure, fitting the yield curve, spot and forwards, and theories of the term structure of interest rates.

The risk of fixed-income securities: In terest rate risk (Duration and Convexity), Credit risk, and Liquidity risk .


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.