Introduction to the Equity Markets

.

This introductory half-day course enables participants with little or no prior knowledge of equity products to gain a solid understanding of the equity markets, investor engagement, how share prices are determined and how are trades fulfilled in the secondary markets. Additionally, you will explore the mechanics of short selling and the role of securities lending. Finally, you will be provided with a short overview of equity valuation using relative value and discounted cash flow methodologies.

Key Learning Objectives

• Familiarity with the equity market jargon and terminology
• Identify the different types of equity security
• Understand the difference between equity and debt
• Examine how shares are priced and traded in the secondary markets
• Understand the mechanics and risks of short selling
• Review the main principles of relative valuation

Start:9:30

What is equity and why trade equity? Their characteristics and features

• Ordinary shares vs. preference shares
• Equities in context – comparisons with bonds as an asset class
• The role of equities in the investment portfolio
• American Depository Receipts (ADRs) and Global Depository Receipts (GDRs
• Differentiating between the primary and secondary markets
• Returns to shareholders – dividends and dividend policy
• The factors that drives share prices

Market making and price discovery

• Quote driven vs. order driven markets
• How prices are quoted – review of the bid/offer spread
• Trade execution and order types
• Light and dark pools of liquidity – what does this all mean

Short selling

• The rationale behind the trade
• The risks of short selling – margin calls
• Short covering and short squeezes – Nvidia and the Gamestop saga

Coffee Break: 10:50 - 11:00

Equity indices

• What are their purpose? Which benchmark to use
• Price versus market cap-weighted indices – Index construction

Securities financing

• Why lend securities – who lends and who borrows securities
• Core uses – financing long positions, covering short positions and settlement failures
• Borrow rates, haircuts and eligible collateral

Primer on equity valuation – establishing fair value for equity investments

• Relative value techniques
• Interpretation of key ratios, including dividend yield and price/earnings

End:12:30

This half day course is relevant to those who are new to the investment industry or those looking to improve their knowledge and understanding of the different aspects of the equity markets.

• Investment professionals, investment administration and operations
• Client services and sales and marketing
• Risk management, legal, audit and compliance
• Finance and accounting
• HR and learning and development
• IT and software developers

IA Member £395.00 +VAT
Non-Member 545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation.
• You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

Hybrid deliveries of our training allows participants on our courses the option to attend in-person here from our offices at Camomile Court, or you can attend virtually via MS Teams.

Please be advised a training course could change from hybrid delivery to solely virtual delivery. In such an event, we will inform delegates at least one week prior to the course delivery date.

There are a limited number of in-person spaces available on this course and this will be allocated on a first come first served basis.

Russell Hammerson

Russell Hammerson is an experienced banker working with structured products and exotic options over 15 years.

Russell started his career in the fixed income trading division at Chase Manhattan in 1986. After having graduated from the Chase nine-month advanced financial risk analysis programme, he was seconded to the Chase insurance banking division for a year. Taking his insurance expertise with him, he later moved to Citibank to work in the financial engineering division, structuring fixed income and equity products for institutional investors.

From Citibank, Russell moved to Bear Stearns to help set up the newly established equity derivatives group as associate director responsible for marketing and structuring of European products prior to becoming head of structured products at Commerzbank.

Before moving into the technical training arena, Russell ran the structured product group at Banque Nationale de Paris followed by Bankgesellschaft Berlin, London, in a similar role as head of engineered products and international new issues and director of the London Management Committee.

Russell has been training all areas of capital markets since 2001. At BG Consulting (now trading as ZISHI Cornerstone), he specialises in structured products, equity and credit derivatives and exotic options.