## We Help You Invent The Future

# Capital Market Domain Training Program

**Who should attend?**

These certifications are recommended for all those who want to learn about Capital Markets or

whose work relates to the domain of Capital Markets in different industries such as Financial

Services and Information Technology.

**Key Benefits**

On completion of this course you will be able to:

- understand the function of global and the Indian capital markets with a client-focused

approach - know the life cycle of individual investment products and specific feature of these

products such as equity, fixed income, structured products and derivatives - get an insight into how the special features of the specific products are meaningful for

different participants in the capital markets i.e. for investors, fund managers, capital market intermediaries and software development companies.

**Program Methodology**

The training methodology is online lecture sessions, exercises and assignment followed by testing

and certification.

**Certification Modules – Core Modules**

1. Understanding Capital Markets

2. Core Accounting and Analysis of Financial Statements

3. Essential Mathematics and Statistics for Financial Markets

**Certification Modules – Expert Modules**

4. Expert Module on Equity Markets

5. Expert Module onFixed Income Market

6. Expert Module onCurrency Markets

7. Expert Module onMutual Funds

8. Expert Module on Trading, Clearing and Settlement in Financial Market

9. Expert Module on Derivatives

**Notes**

1. Detailed coverage and expected learning outcomes for each of the modules is given in the

table below.

2. The learning hours are indicative

Module | Sub-topics | Learning outcomes | |

Securities | By the end of this course, you should be able to: | ||

Financial Markets | Define a financial market | ||

Capital Market | Explain the players and products in a financial market | ||

Understanding | Money Market | Explain the structure of a capital market | |

Financial Instruments | Explain the key elements of securities creation | ||

Capital Markets | Financial Intermediaries | Explain primary market | |

The Mechanics of Deals | Explain secondary market | ||

Market Conventions |
Distinguish between primary and secondary markets Explain Over-The-Counter (OTC) trading |
||

Branches of Accounting | By the end of this course, you should be able to: | ||

Users of Accounting Information | Define a financial statement | ||

List the assumptions of accounting | |||

Accounting Principles | Define a balance sheet | ||

Core Accounting and Analysis of Financial Statements | Generally Accepted | List the features of a balance sheet | |

Accounting Principles | Explain the contents of a balance sheet | ||

The Accounting System in | Explain Profit & Loss (P&L) account | ||

List the key terms in P&L account | |||

Action - Double Entry | |||

System | Explain funds flow statement | ||

Explain the analysis of financial statements | |||

The Accounting Equation | |||

Explain the principal financial ratios | |||

Stages of Double Entry | |||

System of Accounting | |||

Financial Statement | |||

Analysis | |||

Problems in Financial Statement Analysis | |||

Basic Accounting Terminology | |||

Present Value (PV) | By the end of this course, you should be able to: | ||

Future Value (FV) | Explain the cash flow timelines | ||

Essential Mathematics and Statistics for Financial Markets | Special Streams of Cash Flows | Distinguish between a simple interest and a compound interest | |

Explain the present value and the future value of money | |||

Simple Interest Compound Interest & | Calculate the interest for shorter compounding periods | ||

Distinguish between an annuity and an annuity due | |||

Compounding Intervals | Explain a perpetuity | ||

Nominal and Real Interest | |||

Rates | |||

Extension of Time Value of Money concept to Bond Pricing | |||

Measures of Central Tendency | By the end of this course, you should be able to: | ||

List the key mathematical functions used in finance | |||

Explain the measures of central tendency | |||

Essential | Measures of Dispersion | Explain percentiles and quartiles | |

Explain the various measures of dispersion | |||

Mathematics | |||

Explain probability distribution | |||

Probability Distribution | |||

and Statistics for | Explain covariance, correlation, and coefficient of correlation | ||

Regression and Correlation | Apply the concepts of financial mathematics to risk management | ||

**Course coverage **

Financial Markets | Application in Risk Management | ||

Bringing Equities to the | |||

MarketPlace | |||

ADRs and GDRs | By the end of this course, you should be able to: | ||

Distribution: Process of | Explain equity shares | ||

raising capital through an | Calculate Book Value Per Share (BVPS) | ||

Expert Module | Initial Public Offering (IPO) | Define Initial Public Offering (IPO) | |

on Equity | Secondary Market | Define how equity is brought into market using IPO | |

Operations | Explain preference shares | ||

Markets | Stock Market Participants | Explain rights issue | |

Explain American Depository Shares (ADS) | |||

Stock Indices | |||

What determines the stock | |||

price and how does it | |||

change? | |||

Valuation of Stocks | |||

Corporate Actions | |||

Bonds | |||

Types of Bonds | |||

Bond Features | |||

Bond Pricing | By the end of this course, you should be able to: | ||

How to compute the price | Define fixed income (FI) securities market | ||

Define a bond market | |||

Expert Module | of a bond? | ||

List different types of bonds | |||

on Fixed Income | Bond value with | ||

Explain the characteristics of a bond | |||

Market | semi-annual interest | ||

Explain the concept duration of bonds | |||

Yield Measures | |||

Explain the concept convexity of bonds | |||

Price-Yield Relationship | |||

Explain the pricing of a bond with an example | |||

Bond Valuation between | |||

Analyze the price of a bond | |||

coupon payment dates | |||

- Effect of maturity period | |||

Clean Price and Dirty Price | |||

- Effect of coupon rate | |||

Duration | |||

- Effect of level of yield | |||

Convexity | |||

- Impact of discount rate/market interest rate | |||

The Yield Curve | |||

Constructing the Yield | |||

Curve | |||

Primary and Secondary | |||

Bond Markets | |||

Rating of Debt Securities | |||

Bond Portfolio | |||

Management | |||

Money Market | |||

Key Money Market | |||

Instruments | |||

Market Participants | |||

Correspondent Banking | |||

Relationships | By the end of this course, you should be able to: | ||

Factors influencing the | Define forex market | ||

exchange rate | List the factors that influence forex markets | ||

Explain FX quotes | |||

Foreign Exchange Rates | Explain the terminology used in FX quotes | ||

Expert Module on Currency Markets | Spot Market(S) | Explain cross-currency rates | |

FX Deal – Parameters | Explain FX deal | ||

Forward Market | Explain different types of FX transactions | ||

Trading Position | Explain FX derivatives | ||

Types of FX Transactions | |||

Valuation of Currencies | |||

FX Swap | |||

FX Derivatives | |||

Forex Operations – | |||

Organization Structure | |||

How Funds work? | |||

Benefits of Mutual Funds | |||

Types of Mutual Fund | |||

Schemes | By the end of this course, you should be able to: | ||

Functional Classification | Define a Mutual Fund (MF) | ||

Portfolio Classification | List the benefits of investing in a mutual fund | ||

List the risks involved in a mutual fund | |||

Geographical Classification | |||

Compute the Net Asset Value (NAV) | |||

Expert Module on Mutual Funds | Other type of Funds | ||

Describe how mutual funds work | |||

Fund Manufacturing: How | |||

Explain the structure of a mutual fund | |||

mutual funds are created | |||

Explain various types of mutual funds | |||

and structured? | |||

List the mutual fund expenses | |||

Fund Accounting | |||

Explain mutual fund performance measures | |||

Determining the NAV | |||

Explain Hedge Funds | |||

Accounting for Load | |||

Explain Exchange Traded Funds | |||

Distributable Reserves | |||

List the key regulators in mutual funds | |||

Mutual Fund Fee Table | |||

Explain the terminologies in US mutual funds | |||

Required by Federal Law | |||

Quantitative Evaluation of | |||

Mutual Fund Schemes | |||

Risk adjusted measures of | |||

a fund’s performance | |||

Hedge Funds | |||

Exchange Traded Funds | |||

(ETFs) | |||

Trading | |||

Mechanisms/Process | |||

Parties Involved in Trading, | |||

Clearing & Settlement | |||

How prices are quoted: | |||

Bid-Offer System | By the end of this course, you should be able to: | ||

Exchange Trading Process | Define capital market | ||

Expert Module on Trading, Clearing and Settlement in Financial Market | Order Management | Explain different types of capital markets | |

Explain trading of securities | |||

Trade Management | |||

Explain clearing and settlement process | |||

Investment Product | |||

Provide real-time examples of trading, clearing and settlement | |||

Processor | |||

Clearing & Settlement & | |||

other Back-Office | |||

Operations | |||

Settlement Cycle | |||

Margin Lending | |||

Short Selling | |||

Program Trading | |||

Securities Lending | |||

Securities Lending in | |||

Practice | |||

Clearing Methods | |||

Risk Management | |||

Forward contract terminologies | By the end of this course, you should be able to: | ||

Expert Module on Derivatives - Forward Contracts | Explain forward contract and the terminologies related to it | ||

Long and Short forward contracts | Explain long and short forward payoff | ||

Explain how forwards help in managing exchange rate risk | |||

Long and Short forward contracts pay-off profile | |||

Exchange rate risk | |||

management | |||

What are Futures contracts? | By the end of this course, you should be able to: Define futures contract | ||

Futures exchange markets | List futures exchange markets | ||

Expert Module Futures | Contract specifications | Explain the specifications of the futures contract | |

Contract types | Explain the types of futures traders | ||

Forward contracts vs | Compare forward and futures contracts | ||

Contracts | Explain futures price quotations | ||

Futures contracts | |||

Explain the convergence of futures price to spot price | |||

Futures price quotations | |||

Convergence of Futures | |||

price to spot price | |||

Settlement of Futures | |||

contracts | |||

Margin Management | |||

Option contracts and | By the end of this course, you should be able to: | ||

terminology | Define an option | ||

Expert Module | Types of option contracts | Explain different types of options | |

on Derivatives - | Pay-off scenarios of option | Explain pay-off scenarios in options | |

Financial Options | contracts | Demonstrate a pay-off scenario with an example | |

Examples of pay-off | |||

scenarios | |||

Uses of option contracts | |||

Application of Financial | By the end of this course, you should be able to: | ||

options | Explain the applications of options | ||

Intrinsic value of options | Define intrinsic value of an option | ||

Expert Module | Time value of options | Recall the time value of an option | |

on Derivatives - | Factors affecting option | Explain the various factors that affect option value | |

Financial Options | value | Explain Black-Scholes pricing model | |

- Applications, | Black-Scholes pricing | Calculate the theoretical value of European call option using DerivaGem soft | |

Pricing, Greeks | Define option Greeks | ||

model | |||

Explain the various option Greeks that affect the option price | |||

Option Pricing Calculator | |||

Deriving the price of a | |||

European call option | |||