Course:
Financial Markets and Institutions
WEEK
TOPIC
Course Code:
FIN404
Required text: Financial Markets & Institutions by Fredric S. Mishkin & Stanley G. Eakins (Updated
edition)
Reference book: “The economics of money, banking and financial markets” 7th edition by Fredric S.
Mishkin
Additional reading material
Dawn, (Business Section, Economic and Business Review); Pakistan Economist etc.
Financial Times or any other local & International newspaper or Journals; Various publications of State Bank
Of Pakistan.
Pre requisites of Course: Introductory Finance (Financial Management), Micro & Macro Economics
Course Objectives & expected Outcome:
The course is designed to equip students with knowledge of financial system and its regulatory
framework and environments in Pakistan and as it exists in a developed economy. On completion of the
course the students shall be able to demonstrate an understanding of the subject matter.
Course Evaluation and Rewards
Mid term exam
20 %
Assignments & Presentations
10%
Final Comprehensive Exam
70 %
INTRODUCTIONS
1
Why study Financial Markets
Structure of Financial System
Why Study Money and monetary policy?
OVERVIEW OF FINANCIAL SYSTEM
1&2
Function of Financial Markets
Structure of Financial Markets
Moral Hazards and Adverse Selection
Financial Intermediaries
Regulation of the Financial System
UNDERSTANDING INTEREST RATES
3&4
What are interest rates
Distinction between real and nominal interest rates
The distinction between interest rates and returns
Term Structure of Interest Rates
MONEY MARKETS
5
Purpose of money markets
Participants/Players of money markets
Money market instruments
CAPITAL MARKET
BOND MARKET & its purpose
6&7
Different types of bond market securities
THE STOCK MARKET
Computing the price of common stock
How trading & settlement is done in KSE?
THE FOREIGN EXCHANGE MARKET
Foreign Exchange rates
8
How is foreign exchange traded
Factors that affect foreign exchange rates
Exchange rates in short run
DERIVATIVES MARKET
9
Farward, futures and options
10 &11
THE FINANCIAL INSTUTITIONS
MUTUAL FUNDS
CREDIT ASSOCIATIONS & CREDIT UNIONS
12 &13
OTHER FINANCIAL INSTITUTIONS
Insurance companies
Venture Capital Companies
Pension Funds
14
VARIOUS FINANCIAL CRISES
15 & 16
PRESENTATIONS
Good Luck!
Prepared by: Muhammad Kamran Khan