Description
This second edition covers all the areas relevant to investment in securities. It begins with an introduction to the investment process and the risk involved, and then explains 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). The valuation of securities such as shares and bonds is illustrated with examples. The securities market environment and the trading system in India are also discussed in detail. The different phases of portfolio management, such as portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation are explained in separate chapters. Pricing theories such as the Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), and Option Pricing Theory are explained with suitable examples. The book also provides an introduction to derivative instruments. Each chapter is supported with examples, review questions and practice exercises. The book is intended to serve as a basic textbook for students of finance, commerce, and management. It will also be useful to students pursuing professional courses such as chartered accountancy, cost and management accountancy, and chartered financial analysis. New to the second edition:* Two new chapters on Arbitrage Pricing Theory (APT) and Option Pricing are introduced.* Two new sections on MCX-SX (the new stock exchange in India) and Value at Risk (VaR) analysis are also added.* Includes a glossary of important terms.Table of Contents: Preface 1. Introduction 2. Investment 3. Securities Market 4. Stock Exchanges 5. Trading System in Stock Exchanges 6. Risk 7. Fundamental Analysis: Economy Analysis 8. Industry and Company Analysis 9. Share Valuation 10. Bond Valuation 11. Technical Analysis 12. Efficient Market Theory 13. Portfolio Analysis 14. Portfolio Selection 15. Capital Asset Pricing Model (CAPM) 16. Arbitrage Pricing Theory (APT) 17. Portfolio Revision 18. Portfolio Evaluation 19. Financial Derivatives 20. Futures 21. Options 22. Option Pricing Appendix Glossary Bibliography Index
