Equity Markets

Financial Mathematics and Financial Statement Analysis

After a theoretical framework of the different topics, students will have the opportunity to consolidate the knowledge learned through the resolution of a set of pedagogical exercises.

Regarding points 3, 4, and 5 of the program, students will also have the chance to work with real cases that will be presented to them.

Provide the students with a set of knowledge and skills relating to the operating rules of the cash stock markets,
use of different valuation methodologies and trading techniques based on technical analysis.

1. INTRODUCTION

1.1 Concept of share

1.2 Classification of shares according to their form of representation

1.3 Classification of shares according to their form of transferability

1.4 Shares with par value

1.5 Shares without par value

1.6 Own shares

1.7 Types of shares

1.8 Nature of the issuance of shares

2. FUNCTIONING OF THE SPOT MARKET

2.1 Framework

2.1.1 Financial system

2.1.2 Segmentation of financial markets

2.1.3 Subscription and placement forms

2.1.4 Types of public offerings

2.2 Structure of the secondary market

2.2.1 Organized forms of negotiation

2.2.2 The over-the-counter market

2.2.3 The Euronext Group

2.2.3.1 Euronext Markets (segments)

2.2.3.2 Criteria for admission and permanence in the different segments

2.2.3.3 Initial admission costs and annual stay costs

2.2.3.4 Forms of admission to listing and trading

2.2.4 Main market institutions

2.3 Trading on the spot market

2.3.1 Types of stock exchange sessions

2.3.2 Types of exchange orders

2.3.3 Pricing systems (quotes)

2.3.4 Trading phases/times on Euronext markets

2.3.5 Trading suspension

2.3.6 Market operators

2.3.7 Trading modes

2.3.8 Trading costs

2.3.9 Personal income taxation

2.3.10 Shares events (detachment of rights and renaming)

3. SHARES VALUATION THROUGH DISCOUNTED CASH FLOW MODELS

3.1 Underlying philosophy and valuation framework

3.2 Formulation and imputs of the general model

3.3 Variations of the general model

3.4 Practical problems in estimating the model imputs

3.5 Valuation specific cases

3.6 Limitations

4. SHARES VALUATION THROUGH MARKET MULTIPLES

4.1 Underlying philosophy

4.2 Main types of market multiples (PER, PBV, PSR, PCF, EV/EBITDA) and their application

4.3 Limitations

5. TRADING STOCKS BASED ON TECHNICAL ANALYSIS

5.1 The psychology of the market

5.2 Price movements and transaction volume

5.3 Chart analysis and quantitative measures

5.4 High frequency trading

NAO

Damodaran, A. (2006), Damodaran on Valuation – Security Analysis for Investment and Corporate Finance, 2nd Edition, JohnWiley & Sons.
Damodaran, A. (2018), The Dark Side of Valuation – Valuing Young, Distressed, and Complex Businesses, 3rd Edition, JohnWiley & Sons.
Kirkpatrick II, C. D., and Dahlquist, J. R. (2016), Technical Analysis: The Complete Resource for Financial Market Technicians, 3rd Edition, Pearson Education.
Neves, J. C. (2002), Avaliação de Empresas e Negócios, Mcgraw-Hill-Portugal.
Penman, S. (2012), Financial Statement Analysis and Security Valuation, 5th Edition, McGraw-Hill.

Código dos Valores Mobiliários

Estatutos da Interbolsa
Euronext Cash Market Trading Manual
Euronext Regulations