Stock Market

Not applicable

After a brief presentation of the theoretical framework of the subjects, active teaching-learning methodologies are privileged, with a high
practical focus, seeking the involvement and active participation of the students throughout the school term. To this end, the following
instruments will be used:
a) students will carry out, under the guidance of the teacher, a set of teaching exercises on the different topics of the syllabus;
b) realization of a small pratical individual assignment on topic 5. of the syllabus.

This curricular unit (CU) aims to provide students with a set of knowledge and skills relating to the operating rules of cash stock markets, the
use of different methodologies to assess their intrinsic value and trading strategies and techniques based on technical analysis.
Thus, through this course, students should develop the following skills:
1) know how to identify the main characteristics of this type of variable-income security;
2) 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;
3) know how to use the different methodologies for assessing the fundamental value of a share that are used in the market by the different
equity research teams;
4) know how to apply the principles and tools of technical analysis in the context of stock trading on the spot market.

1. INTRODUCTION
1.1 Share concept
1.2 Shares with and without nominal value
1.3 Own shares
1.4 Types of shares
2. 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
3. VALUATION USING DISCOUNTED CASH FLOW MODELS
3.1 Valuation using the dividend discount models
3.1.1 The general model
3.1.2 Variants of the general model
3.2 Valuation using discounted free cash flow models
3.2.1 Using the free cash flow to the firm method
3.2.2 Using the free cash flow for shareholders method
3.2.3 Critical inputs and sensitivity analysis
4. VALUATION OF SHARES USING MARKET MULTIPLES
4.1 Underlying philosophy
4.2 Main types of market multiples and their application
5. 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 evaluation will be carried out according to one of the following modalities:

 

MODALITY A (PERIODIC EVALUATION):

1. One test to be held on the regular season exam date + one (individual) work about topic 5. of the syllabus.

The formula for calculating the Final Classification (FC) in the Periodic Assessment Modality is as follows - FC = 80% x Test + 20% X Practical work.

Students who obtain a FC of 10 and who fulfil the following condition will be exempt from the Exam Assessment:

a) Have obtained a score on the test of at least 40% of the maximum admissible score.

 

MODALITY B: (EXAM EVALUATION)

A single written test covering all the subjects of the program, with approval given to students who obtain a classification equal to or above 10.

NAO