Chapter I An Overview of Finance 1.0 Introduction 1.1 Capital Market 1.1.1 What is a Capital Market 1.1.2 The Role of a Capital Market 1.1.3 Primary Market VS Secondary Market 1.2 Participants in a Capital Market 1.2.1 Financial Intermediaries 1.2.2 Financial Institutions 1.2.3 Broker-dealer 1.3 Business Organisations and Physical Assets Market 1.4 Chinese Capital Market: An Introduction 1.4.1 Shanghai Stock Exchange (SSE) 1.4.2 The STAR Market 1.4.3 Shenzhen Stock Exchange (SZSE) 1.4.4 Beijing Stock Exchange (BSE) 1.5 Share Classes and Securities in China 1.6 Capital Market Analyst Approach Conclusion Exercises Chapter 2 Money and Money Market 2.0 Introduction 2.0.1 Checks/Cheques 2.0.2 Legal Tender 2.0.3 Barter 2.1 Historical Development of Money 2.1.1 Origins of Money 2.1.2 Token Money 2.1.3 A Brief History of Money in China 2.2 The Essential Qualities of Money 2.3 The Functions of Money 2.4 Defining Money in a Broader Sense 2.4.1 Money Convertibility 2.4.2 Money Defined in Theory 2.4.3 Money Defined in Macroeconomics 2.4.4 Money Defined by Money Supply 2.5 Money Market 2.5.1 The Bill Market 2.5.2 Inter-bank (Lending) Market 2.5.3 Certificates of Deposit Market Conclusion Exercises Chapter 3 Basic Concepts and Theories in Finance 3.0 Introduction 3.1 Theory of Managerial Self-Interest 3.2 The Concept of Agency 3.3 The Concept of "Time Value of Money 3.3.1 Single Interest Rate 3.3.2 Compound Interest Rate 3.4 The Concept of Maximising Shareholders' Wealth
3.5 Risk Diversification and Risk Aversion 3.5.1 Systemic Risk or Market Risk 3.5.2 Risk-Aversion Theory 3.6 Information Asymmetry and Financial Signalling 3.6.1 Information Asymmetry 3.6.2 The Financial Signalling Theory 3.7 The Capital Market Efficiency Theory Conclusion Exercises Chapter 4 Business Source of Finance 4.0 Introduction 4.1 Business Structure 4.1.1 Sole Proprietorship 4.1.2 Partnership 4.1.3 Unincorporated VS Incorporated Business 4.2 Equity Finance 4.2.1 Ordinary Shares 4.2.2 Preference Shares 4.3 Debt Finance 4.3.1 Types of Corporate Debt 4.3.2 Interest Coupon Rate 4.4 Convertible Securities and Warrants 4.5 International Sources of Finance 4.6 Alternative Sources of Finance Conclusion Exercises Chapter 5 Time Value of Money 5.0 Introduction 5.1 Future Value 5.1.1 Future Value Table 5.1.2 The Use of Future Value 5.2 Present Value 5.3 Annuities 5.4 Perpetuity 5.5 Real Rates of Interest and Nominal Rates of Interest Conclusion Exercises Chapter 6 Fixed-Interest Securities and Valuations 6.0 Introduction 6.1 What is Value 6.1.1 Book Value 6.1.2 Market Value 6.1.3 Forced-Sale Value 6.2 Government Bond Valuation 6.2.1 Risks Associated with Government Bonds 6.2.2 Calculating Market Value after an Unexpected Change in Interest Rates 6.3 Bond Yields 6.3.1 Interest (Current) Yield 6.3.2 Yield to Maturity (YTM) 6.3.3 The Valuation of Undated Government Bonds
6.4 Corporate Bond 6.4.1 Risks Associated with Debentures and Loan Stock 6.4.2 Further Explanation of Default Risk Premium 6.4.3 China Government Bond Index 6.5 The Yield Curves 6.5.1 An Introduction to Yield Curves 6.5.2 Positive Yield Curve 6.5.3 Inverted Yield Curve 6.5.4 Flat Yield Curve Conclusion Exercises Chapter 7 Ordinary Share Valuation 7.0 Introduction 7.1 Information and Equity Value 7.2 Valuing Ordinary Shares 7.2.1 Absolute Valuation 7.2.2 Relative Valuation 7.2.3 Factors Affecting the Value of Ordinary Shares 7.3 Equity Valuation Models 7.3.1 Asset-based Valuation 7.3.2 Income-based Valuation Model 7.3.3 Discounted Cash Flow-based Valuation (DCFV) Conclusion Exercises Chapter 8 Stock Market Investment Indicators 8.0 Introduction 8.1 Measuring Risks and Returns 8.1.1 Expected Return 8.1.2 Variance and Standard Deviation 8.1.3 Introduction to Some Technical Indicators 8.2 Financial Ratio Analysis 8.2.1 Price/Earnings (P/E) Ratio 8.2.2 Earnings Yield 8.2.3 Earnings Yield VS P/E Ratio 8.2.4 Dividend Yield 8.2.5 Dividend Coverage Ratio (DCR) 8.2.6 Solvency Ratio (Gearing) 8.2.7 Profitability Ratios 8.2.8 Working Capital Management Ratios 8.2.9 Liquidity Ratio 8.3 Comprehensive Examples 8.3.1 Stock Market Performance Analysis 8.3.2 Financial Ratios Analysis and a Comparison of Two Companies in the Same Industry 8.3.3 FRA in Action Conclusion Exercises Chapter 9 Strategic Financial Management 9.0 Introduction 9.1 Business Finance 9.2 Finance in Non-profit Organisations (NPOs)
9.3 The Concept of Value, Revisited 9.4 Strategic Financial Management 9.5 Investment Decisions 9.6 Financing Decisions Exercises Appendix I Keys to Exercises Appendix II Present Value and Future Value Table of I yuan Appendix III Glossary of Finance Appendix IV World Currency Code and Symbol 參考資料
[