405N The New Zealand Stock Market

This subject examines 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.

This subject links to the following course outcome:

Demonstrate the application of relevant legislation, regulations and codes of practice to a variety of scenarios in the financial services industry.
This subject is compulsory for the NZX Diploma.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      • Outline the structure, organisation and roles of the NZX and its participants.
      • Outline the way companies use the stock market 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 the Clearing House operates and the processes involved in carrying out transactions via the Clearing House.
      • 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 share market.
      • 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 stock markets provide both benefits and difficulties for investors.
  • Subject Content
    • Topic Title
      Topic 1 The New Zealand Stockmarket – an overview
      Topic 2 NZX market participants and share registries
      Topic 3 Raising funds on the stockmarket
      Topic 4 Stockmarket products
      Topic 5 Settlement and registration of stockmarket transactions
      Topic 6 Corporate actions
      Topic 7 Stockmarket investing
      Topic 8 Factors affecting securities prices

  • Assessment
  • Prerequisites
    • There are no prerequisites for this subject.

  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.