Stock Market

Financial Statement Analysis and Financial Mathematics.

After a theoretical framework of the subjects, students will have the opportunity to consolidate the knowledge learned by solving a set of pedagogical exercises.

Provide students with a set of knowledge and skills concerning the rules of operation of the spot stock markets and the different methodologies for calculating the intrinsic or fundamental value of a share listed on a regulated market.

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 Share issue premium

1.7 Discounts and share premiums

1.8 Reduction of share capital

1.9 Amortization of shares

1.10 Own shares

1.11 Types of shares

1.12 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 Suspension of trading

2.3.6 Market operators

2.3.7 Trading modes

2.3.8 Trading costs

2.3.9 Personal income taxation

2.3.10 Events on shares (detachment of rights and renaming)

3. EVALUATION OF SHARES THROUGH DIVIDEND MODELS AND DISCOUNTED FREE CASH FLOW MODELS

3.1 Valuation of shares using the dividend discount method

3.1.1 The general model

3.1.2 Variants of the general model

3.1.3 Limitations

3.2 Valuation of shares using the discounted free cash flow method

3.2.1 Using the free cash flow method for shareholders

3.2.2 Using the free cash flow method for the firm

3.2.3 Critical imputs and sensitivity analysis

NAO

Damodaran, A. (2006), Damodaran on Valuation – Security Analysis for Investment and Corporate Finance, 2nd Edition, JohnWiley & Sons.

Neves, J. C. (2002), Avaliação de Empresas e Negócios, Mcgraw-Hill-Portugal.

Pacheco, L., Lobão, J., Madaleno, M., Soares, V. e F. Tavares (2021), Avaliação de Empresas, 1.ª Edição, Edições Sílabo.

Palepu, K.; Healy, P.; Peek, E. (2016). Business Analysis and Valuation: IFRS edition, 4th Edition. CENGAGE Learning.

Serens, M. (2022), Código das Sociedades Comerciais, Edições Almedina.

Euronext Cash Market Trading Manual.

Código dos Valores Mobiliários (versão atualizada, após as alterações decorrentes da Lei n.º 99-A/2021, de 31 de dezembro, publicada no Diário da República n.º 253/2021, 1º Suplemento, Série I).