Cost Management

Liquidity, Trading, and Price Determination in Equity Markets

USD 15.00
instructor
Instructor
Alan Fata, DBA
Category
Strat. & Busn. Mngt
Difficulty
Medium
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The relationship between fundamental information and the price of equity shares is critically important. Fundamental information encompasses a vast array of items that pertain to individual firms, to industries, and to the broad, macro economy. In investment courses, the relationship is considered with respect to portfolio forma-tion. In corporate finance, the relationship is considered with respect to asset valua-tions and the determination of a firm’s cost of capital.

The transformation of fundamental information into share prices starts with the information set and extends to investors (both individual and institutional) and then to the marketplace where equity shares are traded and share prices determined. In so doing, fundamental information is transformed into three factors: (1) expected future returns, (2) uncertainty concerning future returns (an investment’s risk), and (3) the difficulty of buying and selling shares in the market (liquidity risk).

Other course details:
  • This is an introductory course that does not require any prerequisite.
  • This course can be taken on a standalone basis.
  • This course is chapter 2 in the book titled "Liquidity, Markets and Trading in Action, An Interdisciplinary Perspective"
  • It provides 3 PDUs (Strategic & Business Management skill) towards your PMP professional development education
Course Features
Credits:
3 PDU
Skill Section:
Strategic & Business Management
Access:
Lifetime
Test Questions:
15