Reference no: EM132797437

AF706 Financial Analyst

Introduction

The purpose of this unit is to develop the understanding of market equilibrium models, bond valuation and performance evaluation. At the end of this module, students should be encouraged to make enquiries as to the cause and effect of the impact of current developments in the world's capital markets on the investment process and critically appraise current thinking on the theories and investments.

Scenario

You are a financial analyst, advising clients on investment decisions. A client is interested in investing £500,000 in your chosen FTSE 100 company. The client requires you to produce a detailed 2500 report on this company clearly showing your recommendation on whether or not the investment should be made.

The report should have two main sections.

1. Overview of the securities market (1000 words)
This section of the report evaluates the current state of global securities markets, with a special focus on London Stock Exchange (LSE). This section must detail the regulations and procedures relating to trading securities and evaluate the strengths and weaknesses the different types of securities available on LSE.

2. Evaluation of securities of the selected FTSE 100 company (1500 words)
This section of the report critically evaluate securities of the chosen FTSE 100 company with respect to the principles of investment theory. It is expected that you will refer to the financial information published by the company in its annual reports in the last 2 years period while reviewing the performance of the securities of the chosen company.

Particular attention must be placed on the implications of income tax, capital gains tax, inheritance and corporation tax on the securities market and the regulations prevailing in the financial services industry. Based on this analysis, you are expected to recommend and justify appropriate types of savings and investment to your client.

At the end of the report, you must explicitly recommend whether your client needs to invest in this particular security or not. You must also identify and justify the type of security that the client needs to invest in the current market scenario.

Attachment:- Financial Analyst.rar