Good knowledge of finance and statistics.
This course module focuses on understanding the markets in which various financial instruments are traded, the factors that influence the return and risk characteristics of financial instruments (both individually and in portfolio choices), and the role played by the main financial institutions.
At the end of the course, students will be able to: (i) apply concepts relevant to financial markets and financial institutions, such as the flow of funds, levels of interest rates and interest rate differentials, to current events or topical issues; (ii) determine and analyze the appropriate measures of risk and return for various financial instruments. Understand the mechanics and regulation of financial securities exchanges and determine how the value of stocks, bonds, and securities are calculated; (iii) identify and evaluate the role symmetric versus asymmetric information plays in the structure and operation of the financial system information; (iv) evaluate empirical evidence of market performance, and contrast it with theories of market performance; (v) research and analyze specific problems or issues related to financial markets and institutions; (vi) explain the economic rationale for various financial instruments and markets; (vii) identify threats to financial stability in markets and instruments based on case studies of previous financial crises.
(i) Overview of the Financial System Interest Rates;
(ii) Money Markets;
(iii) Capital Markets: Bond Markets and Stock Markets;
(iv) Foreign Exchange Markets and International Financial Markets;
(v) Hedging and Derivatives Markets;
(vi) Depository Institutions and Contractual Saving Institutions;
(vii) Securities Market Institutions and Investment Institutions;
(viii) Financial market failure, crises and regulation.
Lectures introduce the underlying theory, while empirical applications through STATA econometric software allow Students to apply the techniques introduced and test their understanding of how and why some strategies and misuse of financial instruments may lead to financial instability.
The final assessment (attending and non-attending Students) will be composed of: (i) 30% applied assignments on a set of predetermined current financial market issues; (ii) 70% written exam at the end of the semester.
N.B.: If the teaching will be delivered as a combination of traditional and online lectures, we are committed to teaching the programme with the support and guidance needed.