Stock Market

Not applicable

Teaching Methods (TM):

ME1 – Theoretical sessions focused on the transmission of key concepts, incorporating targeted questioning and the use of digital interaction platforms.
ME2 – Sessions devoted to the discussion of pedagogical practical cases, adopting a flipped classroom methodology.
ME3 – Sessions involving the presentation and group discussion of assignments prepared by students, in accordance with the periodic assessment methodology.

Couse objectives (CO):

CO1 – understand the main characteristics of this type of financial instrument, the rules governing the markets where they are traded, and the participants involved.
CO2 – know precisely and thoroughly the different methods of stock valuation.

Leraning outcomes (LO):

LO1 – know how to identify the main characteristics of this type of variable-income security;
LO2 – be able to identify and understand the operations and operating rules of the primary and secondary cash stock markets and the different
roles of their main players;
LO3 – know how to use the different methodologies for assessing the fundamental value of a share that are used by professional financial analysts;
LO4 – know how to apply the principles and tools of technical analysis in the context of stock trading on the spot market.

• P1. INTRODUCTION
  1.1 Share concept
  1.2 Shares with and without nominal value
  1.3 Own shares
  1.4 Types of shares
• P2. THE FUNCTIONING OF THE CASH MARKET
  2.1 Primary market
  2.2 Structure of the secondary market
  2.3 Trading on the spot market
  2.4 Shares events
• P3. VALUATION USING DISCOUNTED CASH FLOW MODELS
  3.1 Valuation using the dividend discount models
  3.2 Valuation using discounted free cash flow models
• P4. VALUATION OF SHARES USING MARKET MULTIPLES
  4.1 Underlying philosophy
  4.2 Main types of market multiples and their application
• P5. STOCK TRADING BASED ON TECHNICAL ANALYSIS
  5.1 The psychology of the market
  5.2 Price movements and trading volume
  5.3 Trading techniques based on chart analysis and quantitative indicators

The assessment will be carried out according to one of the following methods:

A) PERIODIC ASSESSMENT (Regular Period):

MA1 - Completion of 1 individual written test, on the date of the regular period exam (70%) - The test is closed-book and has a minimum grade of 8.0 points, in a 0-20 scale.

MA2 - Completion of 1 group project (30%), related to item 4 or 5 of the syllabus - The maximum number of students in each group is 3. The work is subject to an oral presentation in class, with individual defense. The use of any AI tool is not permitted, except for tools to support writing and presentation (slide creation). The AI ​​tools used must be clearly identified in an appendix to the presentation slides of the work. The minimum individual grade in this assessment component is the same as in MA1.

• In this assessment method, students must have a minimum attendance of 80% in classes. Students with Working-Student Status are exempt from this requirement. However, they must be present on the date of the written test and on the scheduled date for the presentation of the group work they are part of.

• Students who obtain a final grade of at least 9.5 points will pass the course under this assessment method, according to the following final grading (FG) formula: FG = 75% x MA1 + 25% x MA2.

B) EVALUATION BY EXAMINATION (Resit/Special Periods):

MA3 - Individual written exam (100%) - Students who obtain a grade of at least 9.5 points will pass the course.

Important note: in case of well-founded suspicion of fraud detected during the correction phase of the written test or exam (MA1/MA3), students will be required to do an oral assessment to verify the knowledge demonstrated. This verification is carried out by a panel composed of the course professor and two other professors from the area. If a student does not prove to have the knowledge demonstrated in the written test or exam, his classification will be voided.

NAO