BUSINESS ADMINISTRATION
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
IF3231	Fundamental Analysis and Investment Strategies	Fall Spring	3	0	3	6

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Departmental Elective
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Face to face
Course Coordinator :	Assist. Prof. BAHAR KÖSEOĞLU
Course Lecturer(s):	Assoc. Prof. HAKKI ÖZTÜRK Prof. Dr. ÜMİT EROL
Recommended Optional Program Components:	None
Course Objectives:	The course is divided into two parts. The first part is an introduction to organization and properties of international and national security markets such as NYSE, SEC, OTC, SPK and BIST (Istanbul Stock Exchange). The first part also covers short sales and margin transsactions in BIST, capital increase and basic information about stock splits. The second part of the course begins with fundamental analysis, effective use of financial ratios, then puts emphasis on CAPM, portfolio theory and firm valuation models. The main objective of this course is to study fundamental concepts of investment theory in financial markets and to analyze the financial statements of firms. While applying theory to practice, Bloomberg Terminals and Foreks will also be used.

Learning Outcomes

The students who have succeeded in this course;
At the end of the course, you will be able to:

1. gained knowledge of the fundamental tenets of portfolio management
2. analyse financial statements and financial ratios
3. understand capital increase and basic information about stock splits
4. learn firm valuation models

Course Content

Security markets, public placement, valuation, risk, investment funds

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Course Overview, Review of the Syllabus, and course requirements
2)	Primary Value Concepts Market Capitilization-Book Value Equity Value versus Firm Value
3)	Organization and Functioning of International and Turkish Security Markets, SEC, SPK, BIST (Istanbul Stock Exchange), US Stock Markets, NYSE, OTC, NASDAQ System, Public Placement Stages, Types of Underwriter
4)	Short Sales and Margin Transactions in BIST, Basic Information About Stock Splits, Capital Increase, Bonus Issues, Right Issues, Dividends, Pre-emptive Right.
5)	CDS-Credit Default Swaps
6)	Index Calculation Methods, Constructing Market Indexes, BIST Index Properties
7)	Financial Statements, Use of Financial Ratios in Fundamental Analysis
8)	Midterm
9)	Capital Asset Pricing Model (CAPM) Risk Free Rate, Estimation of Beta, Risk Premium
10)	Efficient Market Hypothesis, Risk and Return Concepts, Expected Return, Measuring Risk
11)	Portfolio Management, Markowitz Portfolio Theory, Expected Portfolio Return, Portfolio Risk, Efficient Frontier, Capital Market Line, Minimizing Risk, Maximizing Return and Finding Optimal Portfolio Weights by Lagrange Method.
12)	Portfolio Management, Markowitz Portfolio Theory, Expected Portfolio Return, Portfolio Risk, Efficient Frontier, Capital Market Line, Minimizing Risk, Maximizing Return and Finding Optimal Portfolio Weights by Lagrange Method.
13)	An Overview of Firm Valuation Models: Asset Based Valuation, Income Based Valuation (Discounted Cash Flow Valuation), Relative Valuation (Market Based Valuation). More of the emphasis will be on Relative Valuation.
14)	Relative Valuation Price/ Earnings, EV/EBITDA, Price/Book Multiples

Sources

Course Notes / Textbooks:	Investment Analysis and Portfolio Management by F.Reilly and K. Brown Investments by Zvi Bodie, Alex Kane, Alan J Marcus, 6th. Edition, McGraw-Hill Şirket Değerlemesinin Esasları: Teorik ve Pratik Yaklaşımlar by Hakkı Öztürk, Türkmen Kitabevi. (Turkish Book)
References:	Other required documents will be uploaded in ITSLearning.

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Midterms	1	% 50
Final	1	% 50
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 50
PERCENTAGE OF FINAL WORK		% 50
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Study Hours Out of Class	14	1	14
Project	1	20	20
Midterms	1	30	30
Final	1	40	40
Total Workload			146

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Being able to identify problems and ask right questions
2)	Having problem solving skills and developing necessary analytical attitude
3)	Comprehending theoretical arguments along with counter arguments in detail
4)	Gaining awareness of lifelong learning and being qualified for pursuing graduate education
5)	Applying theoretical concepts in project planning
6)	Communicating efficiently by accepting differences and carrying out compatible teamwork
7)	Increasing efficiency rate in business environment
8)	Developing innovative and creative solutions in face of uncertainty
9)	Researching to gather information for understanding current threats and opportunities in business
10)	Being aware of the effects of globalization on society and business while deciding
11)	Possessing digital competence and utilizing necessary technology
12)	Communicating in at least one foreign language in academic and daily life
13)	Possessing managing skills and competence
14)	Deciding with the awareness of the legal and ethical consequences of business operations
15)	Expressing opinions that are built through critical thinking process in business and academic environment