Universitat Internacional de Catalunya - Barcelona

Portfolio Management

• code 10770
• course 99
• term
• type op
• credits 3

Main language of instruction: Catalan

Other languages of instruction: Spanish

Head instructor

The Stock Exchange is a key institution in terms of the economic activities of a society. Understanding how it works has become a requirement for any Business Administration Student. It is also necessary to know which factors and techniques need to be taken into consideration when managing securities portfolios.  

In order to take full advantage of this subject, students are advised to have taken the following subjects beforehand: Leadership I, Financial Leadership II and Financial Leadership III.

To ensure students become familiar with the Stock Exchange

·        To undertake aspects of technical analysis

·        To undertake aspects of fundamental analysis

·        To learn how to manage securities portfolios

• 04 - To understand and know how to use financial terms within a business framework.
• 06 - To know how to apply the main policies for capital structure and asset management.
• 31 - To develop the ability to identify and interpret numerical data.
• 32 - To acquire problem solving skills based on quantitative and qualitative information.
• 50 - To acquire the ability to relate concepts, analyse and synthesise.
• 51 - To develop decision making skills.
• 52 - To develop interpersonal skills and the ability to work as part of a team.
• 53 - To acquire the skills necessary to learn autonomously.
• 54 - To be able to express one’s ideas and formulate arguments in a logical and coherent way, both verbally and in writing.
• 59 - To skilfully use software and ICTs.

·        To learn how the equities market functions, as well as the tools negotiated within it

·        To learn and know how to undertake a technical analysis using specialised software

·        To know the basics of fundamental analysis

·        To know the basics of managing securities portfolios

 Topic 1. The Stock Exchange: performance and organisation

·        Shares: fundamental concepts

·        Public Offerings (PO’s)

·        The secondary equities market: stages of the market, typology of orders and restrictions

·        The sale and purchase of shares paid in cash

·        The sale and purchase of shares paid in credit

·        Public Offerings (PO’s)

·        Capital transactions in publically traded companies: DPS, stock split, reverse stock split, reduction of capital

Topic 2. Stock Index

·        Concept and type

·        The creation of Stock Indexes

·        Spanish Stock Indexes

·        Main International Stock Indexes

Topic 3. Technical analysis

·        Technical analysis versus fundamental analysis

·        Philosophy of technical analysis

·        Building Stock Charts

·        Chart analysis

·        Candlestick chart analysis

·        Oscillators

Topic 4. Fundamental analysis

·        Definition and philosophy

·        Method for comparables

·        Method for discounted cash flows

·        The Gordon-Shapiro Model

·        The Black-Scholes Model

Topic 5: Financial derivatives

Futures and forwards contracts

Call options

Put options

Derivate coverage

Topic 6. Management of Securities Portfolios

·        Determining the type of client and any portfolio restrictions  

·        Specific investment objectives. Three financial elements: profitability-liquidity-risk.  

·        Strategies and tactics for managing securities portfolios: static, dynamic, active, passive, management and risk, arbitration.

·        The strategic selection of stocks and shares

·        The control and measurement of results

·        Markowitz’s Portfolio Theory

·        Use of the Capital Asset Price Model (CAPM) when managing portfolios

·        Diversification as a tool to manage portfolios

·        

·        5% completion of practical exercises

·        20% core work: a report, a presentation and a defense of a project

·        25% preliminary exam

·        50% final exam