Complete overview of the capital market aiming at a general understanding of market mechanics and of financial instruments characteristics. Participants would also know the regulator and various operators as well as their roles in the market and how to take advantage of market movements for profit taking.

Learning Objectives:

At the end of this session, participants will be able to:

• Define the Capital Market and its segments;
• Identify instruments traded in each segment of the market; 
• Demonstrate equity selection and pricing;
• List market participants
• Explain the M and M hypothesis;
• Identify risks prevalent in several products and hedging methods;
• Demonstrate equity trading and settlement system.

Course Outline

• Market players: financial intermediaries, market infrastructures
• Transactions value chain: Front Office, Middle Office, Back Office
• Distinction between regulated and over-the-counter exchanges
• Distinction between cash products and derivatives
• Arithmetic return rate and Compound Annual Growth Rate (CAGR)
• Discount rate and risk premium
• Valuation bases of financial products: intrinsic value and discounted value 
• Central bank and monetary policy
• Guaranteed transactions and blank transactions
• Cash products: bank certificates, government bonds
• Characteristics of bonds
• Primary market and secondary market
• Valuation of a zero-coupon bond
• Rating and bond spread
• Interest rate derivatives
• Spot trading
• Forward trading
• Foreign exchange options (FX Options) market
• Speculations and hedging
• Organization: compartments, regulates markets / electronic trading platforms
• Fundamental analysis of a stock valuation: beta and risk premium notions
• Technical and chartist analyses of a specific stock performance