Certified Equity Research Analyst VS-1010

Transcription

1 VS-1010

2 Certification Code VS-1010 Vskills Certification in Equity Research focuses on developing the necessary skills for the purpose of advising investors and financial institutions to make profitable investment decisions in the capital market by providing a brief overview of the global markets and an understanding of the stock market movements. The certification assesses the candidate s qualitative and quantitative skills for stock evaluation, analyzing and interpretation of annual reports and the basic techniques of valuation. Why should one take this certification? This Course is intended for professionals and graduates wanting to excel in the field of equity research and valuation. It is also well suited for those who are already working and would like to take certification for further career progression. Vskills Certification in Equity Research is for those candidates looking for opportunities in equity research and valuation division. The certification can help candidate differentiate in today's competitive job market, broaden their employment opportunities by displaying their advanced skills, and result in higher earning potential. Who will benefit from taking this certification? Job seekers looking to find employment in investment houses, brokerage firms, KPOs, insurance firms etc, students generally wanting to improve their skill set and make their CV stronger and existing employees looking for a better role can prove their employers the value of their skills through this certification. Test Details: Duration: 60 minutes No. of questions: 50 Maximum marks: 50, Passing marks: 25 (50%); There is no negative marking in this module. Fee Structure: Rs. 3,999/- (Excludes taxes)* *Fees may change without prior notice, please refer for updated fees

3 Companies that hire Vskills Vskills might find employment in big or small investment houses, mutual funds, insurance houses, brokerage firms or KPO, Venture Capital and Credit Rating firms.

4 Table of Content 1. Introduction 1.1 Goals of Equity Research 1.2 Elements of Equity Research 1.3 Process of Equity Research 1.4 Types of Research 1.5 Classification of Stocks and Market participants 1.6 Concept of Equity Markets and Valuation 1.7 Role of Analyst 1.8 Role of Equity Research in Capital Market 1.9 Different approaches of Equity Research 2. Economic Analysis 2.1 Need and advantages of economic analysis 2.2 Inter-relationship between Stock Markets and Macroeconomy 2.3 Index and Indicators 2.4 Interest Rates 2.5 Fiscal and Monitory Policy 3. Corporate Finance 3.1 Fundamentals of Business Finance, Analysis and Investment 3.2 Financial Management 3.3 Financial Evaluation of Investments 3.4 Evaluating Marketable Securities 3.5 Financial Decisions 3.6 Capital Structure 3.7 Value and Capital Budgeting 3.8 Corporate Financial Planning 3.9 Cash and Credit Management 4. Industry Analysis 4.1 Competitive Business Strategies 4.2 Tools and Policies in Industrial Analysis 4.3 Porter s Five Force Analysis and Generic Strategies 4.4 Industrial Forces

5 5. Company Analysis 5.1 Management System and Business Analysis 5.2 Types of Financial Statements 5.3 Sources of data for Financial Statements 5.4 Financial Statement Analysis 5.5 Growth Rate Sustainability 5.6 Cash Flow Valuation Process 5.7 Capital Asset Pricing Model (CAPM) 5.8 Arbitrage Pricing Theory (APT) 5.9 Understanding Competition and Revenue Drivers 6. Valuation 6.1 Concept of valuation 6.2 Models of valuation 6.3 Technique of valuation 6.4 Forecasting and Growth Rate Analysis 6.5 Preparing Research Reports 7. Modeling 7.1 Discount cash Flow Valuation Model 7.2 Dividend Discount Models 7.3 Gordon Growth Model 7.4 Free Cash Flow Models 7.5 Relative Valuation Models 7.6 SOTP Valuation

6 Sample Questions 1. If the capital markets are efficient, then the sale or purchase of any security at the prevailing market price is. A. Generally a zero NPV transaction B. Always a positive NPV transaction C. Is always a negative NPV transaction D. None of the above 2. Financing decisions differ from investment decisions for which of the following reasons? A. You cannot use NPV to evaluate financing decisions B. The market for financial assets is more active C. It is easier to find financing decisions with positive NPV than to find investment decisions with positive NPV D. None of the above 3. Which of the following is not true about corporate securities market reforms? A. The secondary market overcame the geographical barriers by moving to screen based trading B. Counter-party risk is borne by investors C. The trading cycle in the stock exchanges follow rolling settlement D. The practice of allocation of resources among different competing entities as well as its terms by a central authority was discontinued. 4. If a client buys shares worth Rs. 90,000 and sells s shares worth Rs. 1,10,000 1 through a stock-broker, then the maximum brokerage payable is. A. Rs. 4,000 B. Rs. 6,000 C. Rs. 2,000 D. Rs. 5, The losses in a synthetic long call are. A. limited B. depends on the strike price C. depends on the premium D. unlimited Answers: 1 (A), 2 (B), ( 3 (B,(, 4 (D),(, 5 (A) (

7