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Unit of study_
FINC2121: Equity Security Markets
2027 unit information
This unit integrates core concepts in equity valuation with the institutional and microstructural foundations of financial markets, examining how securities are valued, traded, and priced in real-world environments. Students apply key principles such as present value, cost of capital, asset pricing models, and capital structure decisions, and connect these to how prices are formed through trading mechanisms, market design, order flow, and execution across global markets. Emphasis is placed on practical implementation, with students working with real market data, institutional conventions, and practitioner insights to analyse how valuation signals are incorporated into prices. The unit also introduces data-driven and AI-based tools to support investment analysis and trading strategies. By the end of the unit, students will be able to link valuation frameworks with trading outcomes, understand how market structure influences price discovery, and apply analytical tools to real-world equity investment problems.
Unit details and rules
Managing faculty or University school:
Business (Business School)
| Study level | Undergraduate |
|---|---|
| Academic unit | Finance |
| Credit points | 6 |
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Prerequisites:
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FINC2110 |
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Corequisites:
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None |
| Prohibitions:
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None |
| Assumed knowledge:
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None |
At the completion of this unit, you should be able to:
- LO1. Apply a range of valuation techniques, including cash flow-based and relative valuation methods, to estimate the intrinsic value of equity securities.
- LO2. Analyse how market microstructure, including order flow, liquidity, and trading mechanisms, influences price formation and execution outcomes in financial markets.
- LO3. Integrate valuation insights with trading dynamics to explain how information is incorporated into security prices in real-world market settings.
- LO4. Use data-driven tools (e.g., Excel, programming environments, and AI-based methods) to model valuation problems, analyse market data, and support investment and trading decisions.
- LO5. Design, implement, and evaluate trading or investment strategies, including algorithmic or systematic approaches, using practical or simulated environments.
- LO6. Critically evaluate financial models, trading strategies, and market practices, recognising their assumptions, limitations, and implications.
- LO7. Communicate financial analysis and strategy effectively using both quantitative and qualitative methods, and collaborate in teams to solve complex, practice-oriented problems.
Unit availability
This section lists the session, attendance modes and locations the unit is available in. There is a unit outline for each of the unit availabilities, which gives you information about the unit including assessment details and a schedule of weekly activities.
The outline is published 2 weeks before the first day of teaching. You can look at previous outlines for a guide to the details of a unit.
There are no availabilities for this year.
| Session | MoA ? | Location | Outline ? |
|---|---|---|---|
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Semester 2 2027
|
Normal day | Camperdown/Darlington, Sydney |
Outline unavailable
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There are no availabilities for previous years.
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Modes of attendance (MoA)
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