This new edition of the book explains in detail the two phases of wealth creation through investment in securities. The first phase Security Analysis deals with the selection of securities for investment. The book begins with an introduction to the investment process and a familiarization of the securities market environment and the trading system in India followed by different dimensions of the risk involved in investment. The different methods of security analysis such as Fundamental analysis (including economy, industry and company analysis), Technical Analysis and Random Walk Theory (including Efficient Market Hypothesis) are explained in different chapters. The valuation of securities such as equity shares and bonds is illustrated with examples.
The second phase Portfolio Management includes different processes such as portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation. These processes are explained in different chapters. Pricing theories such as Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), and Fama French Three Factor Model are explained with suitable examples. The book provides an introduction (in four chapters) to Financial Derivatives (Futures and Options) used for hedging the risk in investment. Behavioural Finance—the new investment theory—is also discussed in this edition. Each chapter of the book is supported with examples, review questions and practice exercises to facilitate learning of concepts and theories.
The book is intended to serve as a basic textbook for the students of finance, commerce and management. It will also be useful to the students pursuing professional courses such as chartered accountancy (CA), cost and management accountancy (CMA), and chartered financial analysis (CFA). The professionals in the field of investment will find this book to be of immense value in enhancing their knowledge.
NEW TO THIS EDITION
• A new chapter on Behavioural Finance – The New Investment Theory
• A new section on Fama French Three Factor Model
• Revisions in different chapters
TARGET AUDIENCE
• M.Com/MBA
• Professional courses like CA/CMA/CFA
S. KEVIN, Ph.D., is Emeritus Professor at the Department of Commerce, University of Kerala. He has served as Professor of Commerce and Pro Vice-Chancellor of the University of Kerala. He has also served as Director, TKM Institute of Management, Kollam, and Director, Bishop Jerome Institute, Kollam. He has over four decades of teaching experience in Commerce and Management Studies at the University of Kerala and other reputed Institutions.
Prof. Kevin has published several research articles in scholarly journals such as Finance India, Productivity, Economic and Political Weekly of India, Yojana, International Journal of Management and Systems, Decision, etc. His areas of specialization are financial management, security analysis and portfolio management, international finance, and financial derivatives. He has authored four other books—three of them are published by PHI Learning.
