Course code Ekon3046

Credit points 3

Stock Market

Total Hours in Course81

Number of hours for lectures16

Number of hours for seminars and practical classes16

Independent study hours49

Date of course confirmation21.06.2018

Responsible UnitInstitute of Economics and Finance

Course developer

author prof.

Ingrīda Jakušonoka

Dr. oec.

Prior knowledge

Ekon2109, Macroeconomics

Ekon3113, Finance and Taxes

Ekon4102, Financial Accounting

Course abstract

The general goal of the course is to provide knowledge of the operational principles and mechanism of financial and securities markets, the operational concept of the securities market, the relevant legal framework, as well as the regulation and control system. Students learn the sequential securities turnover steps:security emission, primary and secondary security sales,how to make deals on securities and perform related financial calculations.

Learning outcomes and their assessment

1) Students will be able to demonstrate the knowledge of the operational principles of the securities market, the relevant legal framework and the regulatory and control system – discussions in seminar classes.
2) Demonstrate the understanding of securities turnover steps: emission, primary sales, secondary sales – test with calculations.
3) Demonstrate the knowledge of the application of evaluation algorithms in securities-related calculations for the most important assets – test with calculations.
4) Perform calculations, analyse the results acquired, understand the causes and develop proposals for enhancing the efficiency of a portfolio of securities, calculate returns on stocks, bonds, public debt securities, bills and options - test with calculations, calculations done in classes.
5) Analyse information on the Baltic securities market, financial instruments, market segments and returns on securities - independent work.
6) Responsibly plan the completion of the assignments given, select information and present the calculations performed and the proposals developed – independent work.

7) Compare and evaluate various securities market segments, calculate returns on stocks, bonds, bills and options and independently make decisions on investment in securities – practical assignments, tests.

Course Content(Calendar)

1. Nature and classification of securities (lectures 1 h)
2. Latvian securities market (lectures 1 h)
3. Securities Design and Preparation (lectures 1 h, practical classes 1 h)
4. Secondary circulation of securities. Activities of the Riga Fund Exchange at Nasdaq OMX Exchange Alliance (lectures 2 h, practical classes 2 h)
5. Bond and share calculations (lectures 3 h, practical classes 5 h)
6. Securities issued by the State and their role in regulating economic processes (lectures 2 h, practical classes 2 h)
7. Activities of the Latvian Central Depository (LCD) (lectures 1 h, practical classes 1 h)
8. Activity of investment funds in the financial market (lectures 1 h, practical classes 1 h)
9. Bills of exchange and related calculations (lectures 1 h, practical classes 1 h)
10. Derived securities (lectures 1 h, practical classes 1 h)

11. Portfolio of securities and financial risks (lectures 2 h, practical classes 2 h)

Requirements for awarding credit points

Successfully completed 3 tests: Test 1 - Evaluation of the efficiency of investments in stocks and bonds (25%). Test 2 - Calculation of the efficiency of investments in debt securities and bills (25%). Test 3 - Calculations of return on investment and efficiency for a portfolio of derivatives and securities (25%).
Presentation of a report on an individual study - Analysis of the financial instruments market, opportunities for investment in various financial market segments and a portfolio of securities (25%).

Description of the organization and tasks of students’ independent work

Learning and strengthening the theory material by solving tasks and tests. Preparing for tests. Presentation of a report on an individual study - Analysis of the financial instruments market, opportunities for investment in various financial market segments and a portfolio of securities (up to 16 pages in computer print).

Criteria for Evaluating Learning Outcomes

Test with mark, accumulative assessment of study results - weighted average marks (10% are equal to one point on a 10-point marking scale).

Compulsory reading

1. Modern Portfolio Theory and Investment Analysis J. E. Elton, Gruber M. J., S. J. Brown, W. N. Goetzmann. 8th ed. John Wiley & Sons, Inc, 2009. 727 p.
2. Investments. W.S.Sharpe, G.J.Alexander, J.V.Bailey. 5th ed. M.Infra-M. 2009. 1028 p.
3. Mayo H. B. Basic Finance: An Introduction to Financial Institutions, Investments & Management. 9 th edition. 2006.
4. Applied Corporate Finance: A User's Manual. 2nd Edition. Aswath Damodaran, Stern School of Business. New York Univ., 2006. 672 p.
5. Praude V. Finanšu instrumenti. 1.sēj. Rīga: Burtene, 2009.
6. Praude V. Finanšu instrumenti. Rīga: 2010. 2.sēj. Rīga: Burtene.
7. Rupeika-Apoga R., Zelgalve E. Finanšu tirgus un tā analīzes metodes. Rīga: 2009.
8. Ģ. Apsītis, I. Aščuks, U. Cērps , G. Kokorevičs , Ģ.Ozols , A.Sedlenieks, H.Zuļģis Vērtspapīru tirgus zinības. Otrais papild.izd. Rīga: Jumava, 2006.222 lpp.
9. Rupeika-Apoga R. Valūtas tirgus un valūtas darījumi. Mācību līdzeklis.Riga: 2003.160 lpp.

Further reading

1. Guide to NASDAQ OMX Baltic Securities Market. Pieejams: http://www.nasdaqomxbaltic.com
2. Боди З., Кейн А., Маркус А. Принципы инвестиций. 4-е изд. Москва, 2002. 984 с.
3. Фондовый рынок: курс для начинающих. пер.c англ. Москва, 2002. 277 с.(Серия «Reuters для финансистов»).
4. Bikse V. Ekonomika un bankas. 6.nod. Bankas finanšu sistēmā. Finanšu tirgus. Rīga: 2009, 130.-146.lpp.
5. Jakušonoka I. Vērtspapīru tirgus un finanšu investīciju vadība. Jelgava: LLU, 2001. 180 lpp.
6. Finanšu instrumentu tirgus likums (20.11.2003). Pieejams: https://likumi.lv/doc.php?id=81995
7. Komerclikums (13.04.2000). Pieejams: https://likumi.lv/doc.php?id=5490
8. Latvijas Banka. „Monetārais apskats”. Pieejams: http://www.bank.lv
9. Finanšu un kapitāla tirgus komisijas likums (1.06.2000.). Pieejams: https://likumi.lv/doc.php?id=8172
10. Kredītiestāžu likums (5.10.1995). Pieejams: https://likumi.lv/doc.php?id=37426
11. Ieguldījumu pārvaldes sabiedrību likums (1.07.1998.). Pieejams: https://likumi.lv/doc.php?id=52953
12. Hipotekāro ķīlu zīmju likums (10.09.1998.). Pieejams: https://likumi.lv/doc.php?id=49868
13. Par privātajiem pensiju fondiem (5.06.1997.). Pieejams: https://likumi.lv/doc.php?id=44006
14. Noguldījumu garantiju likums (4.06.2015.). Pieejams: https://likumi.lv/doc.php?id=274737
15. Finanšu un kapitālu tirgus komisijas pārskati. Pieejams: https://www.fktk.lv
16. Rīgas fondu birža. Pieejams: http://www.nasdaqomxbaltic.com

Periodicals and other sources

1. Ekonomikas un finanšu vārdnīca. Rīga: NordenAB, 2003.
2. Pasaules biržu federācija. Pieejams: http://www.fibv.com
3. Finanšu portals. Pieejams: http://www.iFinanses.lv
4. Finanšu portals. Pieejams: http://www.financenet.lv
5. Finanšu portals. Pieejams: http://www.reuter.com

Notes

Restricted elective course for the academic Bachelor’s study programme “Economics”, Accounting and Finance” section of the Faculty of Economics and Social Development