Security Analysis

KUMAR SAURABH
Investment alternatives
 Investment Attributes

 Return
 Risk
 Marketability
 Tax shelter
 Convenience
 Investment Vs Speculation

 Planning horizon
 Risk disposition
 Return expectation
 Basis for decisions
 Leverage
 Functions of financial market

 Price discovery
 Provide liquidity
 Reduce transaction cost
 Classification of financial market

 Nature of claim: debt market; equity market

 Maturity of claim: money market; capital market
 Seasoning of claim: primary; secondary
 Timing of delivery: spot; forward
 Organizational structures: exchange traded; OTC
 Approaches to Investment decision making

 Fundamental approach: find IV

 Psychological approach: emotions
 Academic approach: MP= IV
 Eclectic approach: comprehensive
 Sources of Financial Information

 Economic and Industry Data

 Sources of Market Data
 Sources of Company Data

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 Economic and Industry Data

 Central Statistics Office (MOSPI)- IIP, CPI, HDI, etc.

 Economic Survey
 Weekly Statistical Supplement, Monthly Bulletin, Annual Reports
of RBI
 CMIE
 Sources of Market Data

 Stock Exchanges’ Daily Official List

 Official Year Book/Directory of the Stock Exchange
 RBI’s Weekly Statistical Supplement, Monthly Bulletin, and
Report on Currency and Finance
 Financial Newspapers
 Sources of Company Data

 Company’s Annual Report and Prospectus

 Stock Exchange Official Directory
 Financial Newspapers
 Department of Company Affairs, Office of the Registrar of
Companies