Security markets; legal framework of security markets; organized stock exchanges; listing of
securities; trading and operational mechanism of stock exchanges; settlement and clearing;
online trading; Dematerialisation, Depositories and Depository participants; Credit rating
services; Internet trading andWAPenabled trading online surveilance; Trading practices on
NSE and BSE.
Types of securities – equity based and debt based; derivatives, mutual funds. Concepts of risk
and return; valuation of securities – bond and equity valuation; different approaches to
valuation; Estimation of net asset value of mutual funds – valuation of option.
Security market analysis – fundamental analysis; economic industry and company analyses
– technical analysis – methods of technical analysis; trends, indicators and patterns – advancedecline
line, RSI – market indices and moving averages – Dow theory and Random Walk
Investment management – portfolio management – selection of portfolio – Markowitx
diversification – Investment and taxation – long-term and short-term capital gains – taxation
of capital gains – dividend taxation – interest taxation – tax saving ideas – tax free bonds.
Portfolio theory and risk management – calculation of risk and return of portfolios – problem.
Investment and taxation; tax on interest, dividend, and capital gains. Capital assets and
capital gains; indexation and calculation of capital gains; tax treatment of bonus shares and
capital gains (short-term and long-term capital gains); avoidance of tax and tax planning for
MCom (Masters in Commerce) Subjects