Subject Outline

This subject provides students with an understanding of the functions and operations of the securities market in New Zealand. Students will gain an understanding of how the market operates and the processes used in evaluating securities.

2008 Availability

Trimester 1, 2 and 3

Study Modes

Distance education only

Assessment Method and Weighting

• Assignment - 40%
• Examination - 60% 

Resource requirements

• Calculator
• Internet access

Learning outcomes

On successful completion of this subject you will be able to:

• outline the structure, organisation and roles of the NZX and its participants
• outline the way companies use the stockmarket to raise funds on the NZX
• distinguish between each of the equity and debt securities traded on the retail debt market and on the NZX
• explain how FASTER operates and the processes involved in carrying out FASTER transactions
• explain pricing and valuation methods for simple equity and debt market securities
• assess the effect of imputation and capital gains tax on investment in the sharemarket
• distinguish between the macroeconomic variables that affect the price of debt and equity securities and outline their impact on securities valuations
• discuss elementary portfolio construction, securities analysis and accepted investment practices
• discuss how the global nature of equity investment and the independence of stockmarkets provide both benefits and difficulties for investors.

Pre-2000 subject equivalent: The New Zealand Stockmarket (SE100)

Content

• The New Zealand Stockmarket - an overview
• NZX Market Participants and share registries
• Raising funds on the stockmarket
• Stockmarket products
• Settlement and registration of stockmarket transactions
• Corporate actions
• Taxation and shares
• Stockmarket investing
• Factors affecting securities prices