The present textbook that focuses on Indian Financial Market System is primarily designed for the students of management at all levels. Based on the syllabi prescribed in several Indian universities for the courses of BBA, MBA, BFA, CFA, CA and CS, the book ideally caters to the academic needs of the concerned students.
Structured in three blocks, the book makes an in-depth study of both traditional and modern approaches to securities analysis and portfolio management. Block 1 deals with the basic concept of stock exchange, its issues, offers and trading mechanism. It discloses the risk associated in trading and role of market intermediaries etc. This Block also features in detail money market and capital market instruments such as certificate of deposits, treasury-bills, ADR/GDR, shares, debentures, its types along with other alternatives of investment bonds, stock, IPO, mutual funds, options, and forward trading. Besides these, the historical perspective of securities market reforms in India has also been studied.
Block 2 describes portfolio theories and models such as CML, CAPAM, SML, APT Model, Black & Scholes Option Pricing Mechanism, Sharpe, Treynor & Jensen Ratio, and Modern Portfolio Theory with ample numerical applications. Numerical applications consist of computing portfolio risk, return, variances, covariance, valuation of Goverment stock, bonds, equity and preference shares, YTM, evaluating performance of securities, assessment of net return and maintenance margin in margin trading, ranking of securities and many more. Written in questions & answers format, its theory and applications unit aims at facilitating examination preparation. This section is also devoted to the financial basics of securities and portfolio. It elucidates the fundamental analysis tools — profit and loss, balance sheet, auditor report, cash flow statement etc. — and the technical analysis tools — bar chart, candlesticks diagrams, RSI etc., in an easy-to-understand manner. Besides, it introduces Elliot Wave and Z-score theories.
Block 3 includes financial basics that helps in understanding the impulse of portfolio theory through P/E Ratio, WACC, etc.
It is hoped that the students of Management will consider this book a valuable asset while for the teachers it is an ideal reference book. Even the students of distance learning program will find it useful owing to its comprehensible explanations, charts, diagrams and rich illustrations.
Ritu Ahuja, PGDM (IT), E-Commerce, M.Com., M.B.A, M.Phil., had undertaken various projects of PNB, State Bank of Indore and LIC of India. After teaching Security Analysis & Portfolio Management as an IGNOU Counsellor, she is presently working with Metlife India Co. (Pvt.) Ltd.
