Investing is one of the more complex, competitive and rewarding areas in finance. Security

Analysis & Portfolio Management (SAPM) delivers advanced knowledge about investment

assessment, security analysis and portfolio management, which is critical to those seeking top

jobs in this field. Security analysis and Portfolio management refers to the art of selecting the best

investment plans for an individual concerned which guarantees maximum returns with minimum

risks involved.

What is a Security?

Assets with some financial value are called securities.

Characteristics of Securities

Securities are tradable and represent a financial value.

Securities are fungible.

Classification of Securities

Debt Securities: Tradable assets which have clearly defined terms and conditions are

called debt securities. Financial instruments sold and purchased between parties with

clearly mentioned interest rate, principal amount, maturity date as well as rate of returns

are called debt securities.

Equity Securities: Financial instruments signifying the ownership of an individual in an

organization are called equity securities. An individual buying equities has an ownership

in the company’s profits and assets.

Derivatives: Derivatives are financial instruments with specific conditions under which

payments need to be made between two parties

What is Security Analysis?

The analysis of various tradable financial instruments is called security analysis. Security

analysis helps a financial expert or a security analyst to determine the value of assets in a

portfolio. Security analysis is a method which helps to calculate the value of various assets and

also find out the effect of various market fluctuations on the value of tradable financial

instruments (also called securities).

Portfolio Management

Portfolio theory was proposed by Harry M. Markowitz of University of Chicago. According to

Markowitz’s portfolio theory, portfolio managers should carefully select and combine financial

products on behalf of their clients for guaranteed maximum returns with minimum risks.

Portfolio theory helps portfolio managers to calculate the amount of return as well as risk for any

investment portfolio.

The stream which deals with managing various securities and creating an investment objective

for individuals is called portfolio management.

Portfolio management is generally done with the help of portfolio managers who after

understanding the client’s requirements and his ability to undertake risks design a portfolio with

a mix of financial instruments with maximum returns for a secure future.