EXC 3670 Financial Markets and Institutions
EXC 3670 Financial Markets and Institutions
Financial markets evolve from interactions of the market participants within the boundaries of market institutions. The objective of this course is to provide an in-depth overview of how financial markets work and they are used by the different participants: Corporations and governments seeking to raise funds supplied by private and institutional investors in search of return on savings. Understanding the mechanisms by which securities are traded and implications of efficient and liquid markets for bonds, stocks, foreign exchange, and derivatives, are key learning objectives.
Acquired knowledge
Having completed the course, students should how:
- Time-varying forces of supply and demand for capital emanate and evolve
- Trading of financial assets takes place
- Various participants are likely to behave in financial markets
- Financial institutions accommodate market participant different needs
Acquired skills
Having completed the course, students are expected to master:
- An applied analysis of supply and demand conditions in order to predict market movements of interest rates, security prices, and exchange rates
- An applied analysis of expected trading-behavior of important market participants
- An applied analysis of expected actions by financial institutions in lieu of market movements of financial securities. Interest and foreign exchange rates
Theoretical and practical knowledge acquired prepares students for entering financial markets as a junior trading and managing financial assets and/or performing analytical work.
- Introduction to financial markets
- Interest Rate Detemination and Security Valuation
- Bond and Mortgage Markets
- Stock and Foreign Exchange Markets
- Derivative Securities Markets
- Financial Institution Risk Management
15 weekly lectures, each of three hours duration, for a total of 45 lecture hours. Numerical examples from lecture notes and home-assignments (distributed on Its Learning) are used extensively in class.
Three classes (nine lecture hours) are allocated to learning how to access, and extract data from, the professional Bloomberg database platform.
Information regarding aspects of student evaluations will be provided in class. It is expected that students obtain this information. Although attendance is not mandatory, it is students' responsibility to obtain any information provided in class, but not included in the course-room (Its Learning), or in the text book. Of course, students are at all times expected to be familiar with material distributed on Its Learning. In terms of information, material posted on It's Learning does not substitute for not attending class on a regular basis.
Spreadsheets (Excel software) will be used for applications and examples during the Bloomberg lectures. It is thus highly recommended that students familiarize themselves with using Excel. The Bloomberg sessions will emphasize downloading data into Excel spreadsheets, and subsequent use of the data, for analysis.
This course has two exams: A mid-term exam (weight 30%) and a final exam (weight 70%). Both exams are individual, in-class, closed-book, and are graded on a scale from 0 - 100 points. Students who fail the mid-term may take the final exam. More information is provided in class.
A re-sit exam requires that all exam components (mid-term and final exam) are retaken during, and at the end of, the semester during which course is offered next.
The specialisation requires two years of university education in Business Administration or equivalent.
Covid-19
Due to the Covid-19 pandemic, there may be deviations in teaching and learning activities as well as exams, compared with what is described in this course description.
Teaching
Information about what is taught on campus and other digital forms will be presented with the lecture plan before the start of the course each semester.
EXC 2910 Mathematics, EXC 2904 Statistics, EXC, 2110 Basic Financial Management, or equivalent.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 30 Grouping: Individual Support materials:
Duration: 2 Hour(s) Comment: Midterm exam counting 30% towards the final grade. Exam code: EXC36701 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Comment: Final exam may be taken independent of performance on the mid-term exam. Exam code: EXC36701 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 45 Hour(s) | Lectures including Bloomberg sessions. |
Prepare for teaching | 45 Hour(s) | Reading text-book chapters prior to scheduled lecture. |
Student's own work with learning resources | 60 Hour(s) | Independent studies (textbook material, examples from lectures, and home-assignment problems). |
Examination | 50 Hour(s) | Reviewing course material in preparation for the midterm exam (30%) and the final exam (70%). |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.