East West University
Department of Business Administration
FIN – 335, Financial Institution and Market, Spring– 2009
Course Instructor: Dr. Tanbir Ahmed Chowdhury
Professor & Chairperson, Department of Business Administration
Office Room # Department of Business Administration
7th Floor, DDC Building
Tele Office: 9882308, 8812335, Ext. 244
Class hour:
Section-1, Room # Academic Building MBA Seminar Room
Sunday
11.50 – 01.20 p.m.
Tuesday
11.50 – 01.20 p.m
11.00 a.m. – 11.30 a.m.,
11.00 a.m. – 11.30 a.m,
11.00 a.m. - 11.30 a.m,
Wednesday 11.00 a.m. – 11.30 a.m.,
Thursday 01.00 a.m. – 4.00 p.m
Office hour: Sunday
Monday
Tuesday
1.30 p.m. - 2.00 p.m.
2.00 p.m. – 5.00 p.m.
2.00. p.m. - 3.00 p.m.
2.00 p.m. - 5.00 p.m.
COURSE OBJECTIVE:
Financial Markets facilitate the flow of funds in order to finance the investment by
individual, corporations & Governments. Financial Institutions are the key players in
Financial Markets. Hence, an understanding of money and capital markets and financial
instruments traded in these markets and the discussions of major financial institutions are
the major focus of the course.
Required Text
Jeff Madura: Financial Markets & Institutions, 7th Edition, South - Westen College
publishing, 2005.
Other Reference
Robert W. Kolb and Ricardo J. Rodriguez: Financial Institutions, Black Well Publishers,
First Edition, 1996
Monthly Review of Dhaka Stock Exchange and Chittagong Stock Exchange.
ATTENDANCE: Students are expected to attend all classes and prepare home
assignments on due time. Students' participation will be strongly encouraged. If
any student misses more than three classes, he/she is required to take course
teacher's permission to attend the subsequent classes provided that the student had
valid reason for missing the class.
Penalty for Cheating by Students in Examinations
As per East West University rules “There is zero tolerance for cheating at EWU. Students
caught with cheat sheets in their possession, whether used or not used, & / or copying
from cheat sheets, writing on the palm of hand, back of calculators, chairs or nearby
walls, etc. would be treated as cheating in the exam hall. The only penalty for cheating in
the exam hall is expulsion from EWU."
Topics
Chapter
1. Financial Markets & Institutions

Financial Markets

Securities Traded in Financial Markets

Valuing Securities in Financial Markets

Role of Financial Institutions in Financial
Markets

Financial Institution
2. Interest Rates Determination
3.

Loanable Funds Theory

Economic Forces that affect
Rates

Forecasting Interest Rates
1
2
2
2
6
3
8
3
Interest
3. Offering Stocks and Monitoring Investors

Background on Stock

Initial Public Offerings

Secondary Stock Offerings

Stock Exchanges

Investor Participation in the
Secondary Market

Investor Monitoring

The Corporate Monitoring Role
4. Market Strategies and Micro Structure
a.
b.
c.
d.
No. of Classes
Stock Market Transactions
How Trades are executed
Regulation of Stock Trading
How Barriers to International Stock
Trading
5. Money Market

Money Market Securities

Institutional use of Money Markets

Risk of Money Market Securities
6.Bond Markets

Bond Background

Treasury and Federal Agency Bonds

Municipal Bonds

Corporate Bonds
7. Commercial Bank Operations

Bank Sources of Funds

Uses of Funds by Banks

Off –Balance Sheet activities
8. Mutual Fund Operations

Mutual Fund Background

Comparison to Depository Institution

Stock Mutual Fund Categories

Bond Mutual Fund Categories

Mutual Fund Growth and Size

Performance of Mutual Funds
9. Insurance and Pension Fund Operations

Background

Life Insurance Operations

Pension Fund Background

Pension Regulations

Pension Fund Management

Pension Fund Performance
10. Bangladesh Capital Markets
9
3
10
3
17
3
23
2
25
2
2
Course Evaluation
The distribution of total marks of 100 will be as follows:
1.Quizzes
15 percent
2. Assignments
15 percent
3. Class Performance
05 percent
4. Fist Mid-term Examination
20 percent
5. Second Mid-term Examination
20 percent
6. Final Examination
25 percent
Total
100 percent
Grading Policy:
Guideline for converting numerical scores to letter grades:
Numerical Scores (in %)
Letter Grades
97 - 100
A+
90 - below 97
A
87 - below 90
A-
83 - below 87
B+
80 - below 83
B
77 - below 80
B-
73 - below 77
C+
70 - below 73
C
67 - below 70
C-
63 - below 67
D+
60 - below 63
D
- below 60
F
\
Examination Particulars
Date
Examination
Fabury15, 2009
First Mid-Term
March 15, 2009
Second Mid-Term
April 26, 2009
Final