FIN 3522 Markets and Institutions
FIN 3522 Markets and Institutions
Financial markets are the pillar of the modern economy and society. They encourage efficient asset allocation and growth. Over the years they have evolved as a net of interactions of market participants within the boundaries of market institutions. Growing specialization of various marketplaces and participants and rapid innovation deepen the complexity of the financial environment. This, together with the recent financial crises, brings into light the necessity to understand how financial markets work.
The course focuses on the structure and the role of financial markets in the modern world. It also overviews different participants and mechanisms by which securities are traded, as well as the implications of trading mechanisms for the efficiency and liquidity of markets.
Upon completion of the course students will:
- understand market structures, how and why they changed over time, their impact on price efficiency and liquidity,
- understand the connections between various market participants, their roles and incentives,
- understand the general rules of financial markets and why they may sometimes fail.
Upon completions of the course students will acquire analytical skills that would prepare them to work involve asset management, trading, financial analysis or for graduate work in this area. Students will be able to:
- explain differences between various financial markets and institutions, and their roles
- employ theoretical concepts to analyse actual events taking place on financial markets,
- collect and analyse necessary financial data, e.g., from Bloomberg.
The course will provide foundations for students to bridge financial theory and practice later in their studies. It aims to introduce a student to actual financial markets but also explain fundamentals behind the theoretical concepts and how they are employed in a practical setting. This will enable the student to operate in actual financial markets, e.g., as an asset manager, analyst, trader, or consultant.
- Why do we have financial markets?
- Different institutions and market structures.
- Fundamentals of financial markets. Market efficiency. Interest rates.
- Financial institutions. Financial crises.
- Selected markets in more details. Stock markets. Bond markets.
The course will include a combination of lectures and discussions of actual events.
Specific Information regarding any aspect of student evaluation will be provided in class. It is the student’s responsibility to obtain this information. Please note that whilst attendance is not compulsory, it is the student’s responsibility to obtain any information provided in class that is not included on the course homepage/itslearning or in the textbook. Homepages and/or itslearning are not designed as an alternative for who choose not to attend class.
One of the parts of the course is devoted to explain to collect and analyse financial data (e.g., using the Bloomberg terminal).
This is a course with two exam components - assignment and final The final grade in the course will be based on the following components and weightings:
- Compulsory home assignment. (30%)
- 3 hours written exam. (70%)
Specific information regarding student evaluation beyond the information given in the course description will be provided in class.
Honour Code
Academic honesty and trust are important to all of us as individuals and represent values that are encouraged and promoted by the honour code system. This is the most significant university tradition. Students are responsible for familiarizing themselves with the ideals of the honour code system, to which the faculty are also deeply committed. The expected behaviour and honour code are outlined here.
Any violation of the honour code will be resolved in accordance with BI’s procedures for cheating. These issues are a serious matter to everyone associated with the programs at BI and are at the heart of the honour code and academic integrity. If you have any questions about your responsibilities under the honour code, please ask.
Higher Education Entrance Qualification
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
1. Introduction to accounting and finance.
2. Econ 1.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Weight: 30 Grouping: Group (4 - 6) Duration: 2 Week(s) Comment: Bloomberg Exam code: FIN 35222 Grading scale: ECTS Resit: Examination every semester |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Comment: Written exam Exam code: FIN 35223 Grading scale: ECTS Resit: Examination every semester |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 30 Hour(s) | |
Digital resources | 15 Hour(s) | Asynchronous teaching |
Seminar groups | 2 Hour(s) | Introductory seminar to Bloomberg |
Individual problem solving | 4 Hour(s) | Bloomberg own practice sessions |
Prepare for teaching | 74 Hour(s) | |
Group work / Assignments | 30 Hour(s) | |
Examination | 45 Hour(s) | Exam incl. preparations |
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.