Principles of Investment (DPI2000)
Instructor: Mr N.P. Uzera
STATEMENT ABOUT ACADEMIC HONESTY AND INTEGRITY
All students, upon signing this course outline, commit themselves to abide by the policies and rules of the institution. The core activity of IoB is learning and in this respect academic honesty and integrity is very important to ensure that learning is valid, reliable and credible.
IoB therefore does not condone any form of academic dishonesty, including plagiarism and cheating on exams and assessments, amongst other such practices. IoB requires students to always do their own assignments and to produce their own academic work, unless given a group assignment.
Academic Dishonesty includes, but is not limited to:
- Using the ideas, words, works or inventions of someone else as if it is your own work.
- Using the direct words of someone else without quotation marks, even if it is referenced.
- Copying from writings (books, articles, webpages, other students’ assignments, etc.), published or unpublished, without referencing.
- Syndication of a piece of work, all or part of an assignment, by a group of students, unless the assignment was a legitimate group assignment.
- The borrowing and use of another person’s assignment, with or without their knowledge or permission.
- Infringing copyright, including documents copied or cut and pasted from the internet.
- Asking someone else to prepare an assignment for you or to write or sit an assessment for you, whether this is against payment or not.
- Re-submitting work done already for another course or programme as new work, so-called self-plagiarism.
- Bringing notes into an examination or test venue, regardless of whether the notes were used to copy or not.
- Receiving any outside assistance in any form or shape during an examination or test.
All forms of academic dishonesty are viewed as misconduct under IoB Student Rules and Regulations. Students who make themselves guilty of academic dishonesty will be brought before a Disciplinary Committee and may be suspended from studying for a certain time or may be expelled. All students who are found guilty of academic dishonesty shall have an appropriate endorsement on their academic record, which will never be erased.
COURSE INFORMATION
COURSE CODE AND TITLE: Principles of Investment (DPI2000)
COURSE DESCRIPTION:
The aim of this course is to explain the meaning of investment, and the difference between investments in equity and debt instruments. This course will discuss the meaning of speculation as well as the categorization of real estate investment and the meaning of financial and hybrid security. This course will furthers discuss the difference between debt and equity finance as well as the importance of cash flow management. This course will finally illustrate how interest on a deposit, interest accrued, simple and compound interest, the present value and the annual internal rate of return on investment are computed.
NQF Level: 6
CREDITS:
PREREQUISITES: None
EXIT Learning Outcomes:
Upon successful completion of this course, students will be able to:
1. Describe the importance of investment and its positive impact on the economy,
2. List and explain the various investment approaches, types of debts and hybrid securities
3. Know the difference between equity and debt finance as well as the importance of cash flow management
4. Compute various interest rate calculations.
PRESCRIBED TEXT BOOK:
- Reilly, FK and Brown, KC (2000). Investment Analysis and Portfolio Management. 6Ed. Pearson, ISBN 978-0030 258091
OTHER READING MATERIALS:
· Blake, D (2000). Financial Market Analysis, 2nd Ed. John Wiley & Sons Ltd, Great Britain.
Web Sites:
Course Content
1. Introduction to Investment
a) What is investment
b) Define security, Stock vs Bond, Speculation and Assets
c) Distinguish between money and capital markets
d) Discuss Equity investment
2. Basics of Investment
a) Approaches to explain investment
b) Real estate investment
c) Meaning of financial security, debt and equity
d) Meaning of hybrid security
3. Finance Related Questions
a) How to finance a business
b) What is cash flow and the importance to manage it
c) What is Equity and Debt financing
4. Interest rate calculations
a) Methods to calculate Interest rate
b) Money markets calculations
c) Bond markets calculations
5. Financial Arithmetic
a) Future values: Single Payments
b) Present values
c) Rates of return
IMPORTANT DATES:
NOTE: The following dates are subject to change based on the needs of the students at the lecturer’s prerogative. Students will be notified ahead of time of any changes.
|
Due Date(s) |
Important Information |
|
March 2019 |
Assignment 1 |
|
April 2019 |
Assignment 2 |
|
August 2019 |
Assignment 3 |
|
September 2019 |
Assignment 4 |
ASSESSMENT AND EVALUATION: Continuous assessment 50%
Examination 50%; 1 x 3 hour examination paper
Minimum pass requirement for this course: 50%
COURSE POLICIES
General Academic Policies:
It is the student's responsibility to be familiar with and adhere to IoB’s Policies.
AUTHORISATION:
This course is authorised for use by:
___________________________________
__________________________
Head of Department Date
ACKNOWLEDGEMENT BY STUDENT
(To be completed by all students on the course, detached from the course outline and kept on record in the department)
I, ____________________________(insert name), ______________________(Student number), hereby acknowledge that I have received this course outline for (insert course title and code), and that I have familiarised myself with its content, in particular the statement about academic honesty and integrity. I agree to abide by the Policies and arrangements spelt out in this course outline.
______________________ _______________________
Signature of Student