BUECO2622 – FINANCIAL MARKETS AND INSTITUTION

Distinguish the economic functions of financial instruments, markets, institutions, and the Reserve Bank of Australia.

Examine the developments and challenges facing Australian and international financial systems.

Recognize the types of risks in corporate financial management.

You are currently a junior client adviser with a boutique wealth management and advisory firm which provides investment advice and wealth and fund management services primarily to high net-worth individual or family clients.

These clients pay advisory and investment return commission fees to your firm in return for the provision of initial investment planning and evaluation services, ongoing investment and related advice and the development and management of investment strategies and portfolios on their behalf.

Also Read : BUACC1508 - ACCOUNTING & FINANCE

You have just been assigned a new client who is a successful software developer whose software development business that was started in partnership with four university friends has just been acquired by Atlassian, the Australian enterprise software company that originated in Sydney, Australia, and is listed on the Nasdaq Stock Exchange in the United States in 2015.

The client is currently interested in Australian share markets and seeking out a potential investment.

He has allocated $500 thousand of his share of net proceeds from the sale of the software development business to the creation of an investment portfolio, and he has approached your firm for investment advice and to act as his stockbroker in developing and managing this investment portfolio in the future.

He declared that his risk tolerance is high and he would like to have an investment strategy and associated portfolio to be focused on a capital growth perspective rather than an income or tax-effectiveness perspective.

Your direct manager asks every staff in your team to analyze the overall market and pick up a potential stock, which is desired to fit the client’s expectation.

Finance assignment requires the preparation of an equity research report which is to be provided to the client. The report should include the following information:

A brief and informative summary of the current investment environment in Australia and identification of any key economic or financial indicators or events impacting on the near-term investment environment.

Industry analysis and fundamental analysis (top down and bottom up) to analyze the share of the potential company’s stock among other peer companies in the same industry that you would like to recommend for the client’s strategic portfolio.