The Fundamentals of Equity Markets

Training Description

The training The Fundamentals of Equity Markets provides you with a clear understanding of how stock markets work, the key players involved, and the basic principles of equity investment.

Designed for professionals and investors seeking to master the basics of equity markets, this training will help you understand pricing mechanisms, factors influencing stock prices, and key investment strategies.

This training covers essential concepts such as the role of equity markets in the economy, stock indices, stock valuation methods, and different investment styles. You will also explore the basics of equity derivatives and the main risks associated with stock market investments.

Through a combination of theory and practical case studies, you will develop a strong foundation to analyze markets, identify investment opportunities, and manage a stock portfolio while considering fundamental market principles.

Training Objectives

• Understand how equity markets function and their role in the economy.
• Identify the main market participants and their interactions.
• Know the pricing mechanisms and stock indices.
• Grasp the factors influencing stock prices.
• Know the main stock valuation methods.
• Understand investment strategies and management styles.
• Discover the use of derivatives related to the equity market.
• Grasp risk and diversification concepts applied to equities.

Target Audience

• Individual investors
• Investment advisors
• Financial analysts
• Portfolio managers
• Corporate bankers
• Corporate treasurers

Training Duration

• 2 days (14 hours)

Training Program

Training Program: Equity Markets and Investment Strategies

I. Introduction to Equity Markets

• Equity Market Characteristics: definition, role, and functioning
• Main Market Participants: issuers, institutional investors, retail investors, market makers

Case Study:

Identifying the roles of market participants based on real scenarios

• Major Stock Exchanges: NYSE, Nasdaq, Euronext, LSE, HKEX

Case Study:

Associating listed companies with their primary stock exchange

II. Equity Issuance and Pricing

• Types of Issuance: Initial Public Offering (IPO), capital increase, secondary offerings
• Pricing Mechanisms: fixing, continuous trading, order book
• Stock Indices: CAC 40, S&P 500, Dow Jones, MSCI World

Case Study:

Analyzing the evolution of a stock index

III. Equity Valuation

• Valuation Methods: asset-based approach, valuation multiples, DCF
• Key Financial Ratios: P/E ratio, ROE, P/B, EV/EBITDA

Case Study:

Valuing a company based on its financial statements

IV. Investment Strategies in Equity Markets

• Investment Styles: value, growth, GARP, passive vs active management
• Technical Analysis vs Fundamental Analysis: key indicators and approaches
• The Role of Dividends and Their Impact on Performance

Case Study:

Building an investment strategy based on an investor profile

V. Equity-Linked Derivatives

• Stock Options: calls, puts, implied volatility
• Stock Index Futures: futures contracts and their use in hedging

Case Study:

Using options to hedge an equity portfolio

VI. Risk Factors and Risk Management

• Main Risks: market risk, liquidity risk, currency risk
• Risk Management Tools: diversification, stop-loss, hedging strategies

Case Study:

Analyzing the impact of a market shock on an equity portfolio

VII. Regulation and Ethics in Equity Markets

• Main Regulators: AMF, SEC, ESMA
• Transparency Rules and Investor Protection
• Market Abuses: insider trading, market manipulation

Case Study:

Studying a famous market manipulation case