This course provides an overview of the capital markets. The course starts with identifying the purpose of the capital markets, raising capital and trading. Equity markets are defined and specific details, such as types of shares, rights and warrants, classification of equity, and market participants are identified. The major exchanges are discussed and the specifics of a specialist versus over the counter market are explored. This is followed by an introduction to the debt markets, defining the broad structure of debt markets, differentiating between debt and equity, different types of bonds and money market instruments. Primary versus secondary markets are explained and market participants are identified. The role of the Federal Reserve is examined. An introduction to futures follows, examining the features and characteristics of a futures contract, margin, and settlement. The fundamentals of options are explored, defining features, characteristics, terminology, and basic applications. Origination and syndication are covered as well as regulation. The Securities Acts of 1933 and 1934 are discussed. Risks are identified and explored.
Objectives
By the end of the course, the participant will be able to:
- Identify the purposes of the Capital Markets
- Describe the features and characteristics of the equity markets and debt markets
- Differentiate between the specialist system and OTC market makers
- Identify the key functional areas in the investment bank; corporate finance, syndication, mergers and acquisitions, sales, trading and research
- Differentiate between money markets and debt markets
- Describe the differences between the primary and secondary markets
- Explore origination and syndication, including bringing a new issue to market, role of underwriter, the pitchbook and roadshow
- Describe the regulation in the capital markets i.e. Securities Acts of 1933 and 1934
- Outline Reg. T and margin requirements
- Identify and define main risks associated with capital markets
This course is designed for people:
- Starting a career in investment banking
- Supporting functions in an investment bank
