Benefits and Added Value

In this program will introduce both the technical and financial analysis as a way for evaluating securities. It aims to clarify how the mathematics (compounding and discounting) is used to determine the present values of financial obligations of the firm. The role of the financial markets specifically the stock exchange will also be introduced.

Structure

This program will be conducted over five sessions, five hours per session, i.e. 25 hours. It will cover the following topics and issues:

• 1st Introduction to cash flow and its importance in evaluating shares and bonds.
  • The role of cash flow in evaluating shares and bonds.
  • The role of accounting and financial management in evaluating shares and bonds.
• 2nd  Financial market and its institutions
  • The money market
  • The capital market
    • Medium and long-term loans market
    • Securities market
• 3rd  Stock exchange and its role
  • The primary market
  • The secondary market
  • Brokerage firms
  • Market makers
  • Relationship between stock exchanges and different governmental entities.
  • Indexes and their meanings
  • Securities market efficiency
• 4th Technical Analysis
  • The technical approach.
  • Major reversal chart patterns
  • Key reversal day
  • Different  types of charts
  • Support and resistance points
  • Moving average as a way of predicting price movements.
• 5th Fundamental Analysis
  • Economic valuation factors
  • Industry valuation factors
  • Corporate valuation
    • Cash flow statement
    • Ratio analysis
    • Limits of ratio analysis
• 6th  Discounted cash flow methods
  • Share valuation
    • The general case
    • Zero growth case
    • Differential growth case
    • The effect of growth rate on the value of shares.
  • Bond valuation
    • Zero Coupon bonds
    • Level – coupon bonds
    • Consoles
    • Bond yield
      • Yield to maturity.
      • Yield to call
      • Current yield
• 7th Trade credit valuation as an alternative of bonds

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