Undergraduate Course: Equity Finance (BUST10155)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 10 (Year 3 Undergraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | The course is only open to Year 3 or Year 4 students on the following degree programmes:
MA Accounting and Finance
MA Finance and Business
MA Economics with Finance
The Equity Finance elective is designed to provide an overview of equity financing, with a clear focus on initial public offerings (IPOs). You will gain familiarity with the market for IPOs more generally and the IPO process in particular. Additionally, you will be introduced to seasoned equity offerings (SEOs). Relevant (empirical) research will be included aiming to help you develop a broad knowledge and understanding of issues relevant to the raising of equity capital. |
| Course description |
You will familiarise yourself with the most important terms and issues surrounding equity financing. Through readings, you will learn about the processes and institutional setting of the primary market for equity financing, including the importance of the share allocation process in an IPO and the long-run performance of IPOs. Moreover, you will learn about SEOs and the short-term as well as long-term capital market reaction to this choice of financing. Readings will not only be based on standard books but will include a fair number of academic articles that elucidate contemporary issues relevant to equity financing. Deep understanding of these topics should equip you with a solid base of analytical and critical reasoning skills to help enable the pursuit of a wide array of careers including in investment banking, corporate finance and treasury management.
Topics covered in this course include an introduction to the IPO market, sources of equity financing, the benefits and costs of going public, the mechanics of the going public process, the issue of IPO underpricing as well as the long-run performance of IPOs. Alternatives to the IPO process will be discussed, too. Additionally, SEOs will be analysed, their reasons and empirical evidence on their capital market perception.
This course places a great emphasis on independent learning. Before each lecture, you will be provided with a list comprising 2-3 core readings and a number of additional readings. You are expected to read the core readings and ideally most if not all of the additional ones. The lectures will explore particular aspects of the readings and attempt to help you put materials in context. They are not a substitute for the readings. The nature of the material means that in many cases there may be no single acceptable answer. You are expected to learn how to argue a case that is supported by academic theory and empirical evidence.
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Information for Visiting Students
| Pre-requisites | Visiting students must have at least 4 Business courses at grade B or above. This MUST INCLUDE at least one Finance course at intermediate level. This course cannot be taken alongside BUST08003 Principles of Finance. We will only consider University/College level courses. |
| High Demand Course? |
Yes |
Course Delivery Information
|
| Academic year 2022/23, Available to all students (SV1)
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Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
200
(
Lecture Hours 20,
Supervised Practical/Workshop/Studio Hours 1,
Feedback/Feedforward Hours 2,
Formative Assessment Hours 2,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
169 )
|
| Assessment (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
|
| Additional Information (Assessment) |
Individual presentation 30%; final exam 70% |
| Feedback |
Formative: Students are strongly encouraged to obtain feedback by asking/answering questions.
Summative: Generic feedback on coursework will be given. There will also be general feedback on the final exam.
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| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
|
| Main Exam Diet S1 (December) | | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- Understand and critically discuss the going public process.
- Understand and evaluate the reasons for going public and the associated costs and benefits.
- Understand and critically evaluate current topics pertaining to initial public offerings.
- Understand reasons of the long-run stock performance of companies following an initial public offering.
- Understand and assess the main reasons for seasoned equity offerings and the capital market reaction to seasoned equity offerings.
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Reading List
Required:
Brearly, R. A., Myers, S. C., &. Allen, F. (2020) Principles of Corporate Finance, Thirteenth Edition, McGraw-Hill.
Additional:
Berk, J. & DeMarzo, P. (2017), Corporate Finance, Fourth Edition, Pearson Education.
Detailed Resource List will be made available
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Additional Information
| Graduate Attributes and Skills |
An introduction to:
- Meaningful Interpersonal Interaction
- Effective Emotional Intelligence
- Ethical, Responsible and Sustainable Business Behaviour
- Creative and Entrepreneurial Practice
Development of:
- Authentic Leadership
- Personal and Professional Competence
- Intellectual Curiosity
Assessed:
- Appropriate Communication
- Understand and Make Effective Use of Data
- Academic Excellence
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| Keywords | Equity Finance,Initial Public Offerings,Seasoned Equity Offerings |
Contacts
| Course organiser | Dr Sascha Kolaric
Tel:
Email: Sascha.Kolaric@ed.ac.uk |
Course secretary | Miss Isla Dalley
Tel: (0131 6)50 3900
Email: Isla.Dalley@ed.ac.uk |
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