INSTITUTE OF MANAGEMENT SCIENCES
HAYATABAD – PESHAWAR
Programme:
Course Title:
Course Code:
Nature of Course:
BBA, BSc (Eco.) (Honours)
Financial Markets & Institutions
BSc.(Eco.)
Core Course, 3 Credit-Hours
Course Objectives: This course will able students to understand the financial institutions,
services of the financial institutions, capital, types of capital, types of capital market and about
investment in the financial institutions; the role of financial market in the economic growth and
environment and different capital market instruments.
Course Outline
Topic
OVERVIEW OF FINANCIAL
SYSTEM
Subtopics
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MEASURING INTEREST
RATE
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CENTRAL BANK
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COMMERCIAL BANKING
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Overview Of Financial System
Financial Institutions
Structure Of Financial Market
Function Of Financial Intermediaries
Characteristics And Types Of Financial Markets
Asset Liability Management
Asymmetric Information
Distinction Between Real And Nominal Interest Rate
Distinction Between Interest Rate And Return
Determinant Of Asset Demand
Supply And Demand In The Bond Market
Functions of central bank
Credit control
Monetary policy and its tools, goal and objectives
Functions And Regulations
Portfolio Management
Regulation Of Commercial Banks
PRIMARY MARKETS
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Traditional Process for Issuing New Securities
Investment Bankers
Variations in Underwriting
o Bought Deal
o Auction Process
o Preemptive Rights Offering
o Private Placements
SECONDARY MARKETS
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Functions of Secondary Markets
Trading locations
Market Structures
Role of Brokers and Dealers
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MONEY MARKET
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Why Do We Need Money Market?
Characteristics Of Money Market
Money Market Instruments
o Treasury Bills
o Federal Funds
o Repurchase Agreements
o Negotiable Certificate of Deposit
CAPITAL MARKET
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Purpose Of Capital Market
Capital Market Participants
Types Of Bonds
o Treasury Bonds
o Municipal Bonds
o Corporate Bonds
NON-BANK THRIFT
INSTITUTIONS AND OTHER
FINANCIAL FIRMS
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The Mutual Fund (Investment Companies)
o Benefits Of Mutual Funds
o Mutual Funds Structure
o Investment Objective Class
Insurance Companies
o Fundamental Of Insurance
o Types Of Insurance
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Recommended Book:
Text book: Fredricks S. Mishkin, Stanley G. Eakins; Financial Market & Institutions; 5th ed
Reference book: