UNIVERSITY OF JOHANNESBURG
DEPARTMENT OF FINANCE AND INVESTMENT
Introduction to Financial Markets
BLENDED LEARNING
(A3FIF7X)
Study Guide 2021
Study guide prepared by Mrs I O’Leary-Govender
Copyright © Department of Finance and Investment Management
University of Johannesburg
University of Johannesburg
Study guide: Introduction to Financial Markets (A3FIF7X)
Module name:
Module code:
1.
Departmental Vision, Mission and Values
Vision
Mission
Values
2.
Introduction to Financial Markets
A3FIF7X
To be the finance research and education leader in Africa …
by being a dynamic, internationally recognised academic department
that delivers quality service to our students, industry, colleagues,
peers and community through innovative research, flexible teaching
and lifelong learning in finance …
demonstrating conduct that will always be
• ethical,
• professional,
• dedicated,
• transparent,
• supportive
and be a testimony to our excellence
Student Responsibility and Accountability
A no-nonsense approach will be followed by all lecturers in the Department of Finance and
Investment Management regarding:
•
•
•
•
•
•
•
•
•
3.
absenteeism from lectures and tutorials;
unpunctuality in respect of lectures, tutorials and assessment opportunities;
late or no submission of homework tasks and/or assignments;
submission of shoddy work (homework tasks and/or assignments);
inadequate preparation for summative assessment opportunities (test and exams);
disruptive behaviour and non-attentiveness in class and/or talking, eating, drinking,
listening to music via headphones, and the use of cell phones;
submission of invalid or questionable reasons for non-attendance at lectures, tutorials
and assessment opportunities or non-submission of assignments;
playing the “blame game”; and
demands for special concessions.
Lecturer
Mrs I O’Leary-Govender
A-Ring 520
(011) 559-3856
ioleary@uj.ac.za
4.
Sources to Consult for the Module
• The following text book must be purchased by all students:
• None
The following text book will be placed on the reserve shelf in the library:
• Brown, K.C. & Reilly, F.K. 2009. Analysis of Investments and Management of Portfolios.
9th edition. South-Western. (ISBN 0-324-65842-7)
• Bodie Kane and Marcus 2011. Investments and Portfolio Management. Global Edition,
9th edition, McGraw-Hill; ISBN: 978-007-128914-6. The text book is available at the
bookshops on the campus.
Hand-outs:
• Any notes/magazine or journal articles that might be specified from time-to-time.
• As this module builds on previous modules, a good understanding of concepts covered
in other Investment Management modules (e.g. TVM) will be assumed. Students are
urged to revisit this topic if they feel that they do not have the required insight.
• For all parts of this module students will be expected to do self-study and keep up to
date with the daily newspapers, financial magazines, and other literature related to the
topics covered as well as the global economy and financial markets in general
5.
Plagiarism
Plagiarism refers to the appropriation of the work or ideas of others. Plagiarism is unethical and may be regarded as a criminal offence in terms of the Copyright Act 98 of
1978. The University of Johannesburg places a high premium on its academic standards
and subscribes to a value system which requires strong action against plagiarism.
Plagiarism is regarded as a serious contravention of the University’s rules which can lead
to expulsion from the University.
Students m ust please note that plagiarism in hom ew ork assignm ents w ill not
be tolerated. Any plagiarism discovered in hom ew ork assignm ents w ill be acted
upon.
6.
Lectures
Lectures are there to make the content more interesting and understandable.
During each lecture, the lecturer will provide detailed outcomes for the lecture which may
help the student with his/her preparation for assessment opportunities.
Since you will only see your lecturer once a week, it will be impossible for him/her to cover
every single word and paragraph in the textbook. You will therefore have to use all
resources to ensure that you are well prepared for the assessments.
7.
The lecturing approach
The learning approach for this course intends to focus equally on the acquiring of
knowledge and skills as well as ways of executing activities or tasks. The learning process
is learner-driven. The lecturer limits teaching and rather acts as facilitator to stimulate
creativity, self-learning and critical thinking on the part of the learner. This implies that the
student should be actively involved in the process. Lecture periods are not aimed at
conveying factual contents, but are aimed at developing critical thinking skills, problem
solving techniques and practical application of subject matter.
This course necessitates that you prepare for lectures. During the lectures you will have
to participate in class discussions and apply the approaches and techniques on real
economic and financial data to make investment decisions. This implies clear
communication and willingness to share your finding with fellow students.
8.
Study Guidelines
It is critical that you understand what you are studying, whether it is conceptual or
analytical. Be an active student .
•
•
•
•
Ask yourself such questions as:
o What is the purpose of this concept or formula?
o Why is it important?
o How does the lecturer or author demonstrate its importance? and
o How does it "fit" with what you have studied thus far in this course and in your
other courses?
Rephrase the information in your own words;
Develop your own examples;
Form study groups to discuss module content and resolve end of chapter problems.
A good process to use in preparation for lectures is:
•
•
Before class:
o Review each topic’s notes before lectures to familiarise yourself with the flow
of the class discussion;
o The learning objectives at the beginning of each chapter provides an excellent
overview of the major points to be discussed in the particular chapter and will
assist you in preparing for the lecture. See power point slides on EduLink. (I
should stress, however, that they are guide lines and not an exclusive listing
of points in the discussion of the text.);
o You should also review the text readings for the class and read any assigned
supplemental readings; and
o You should complete each homework assignment before the lecture starts. This
will also assist in your preparation for class.
During lectures:
o Keep up with the discussion;
o If you don’t understand something, ask me to go over it in more detail;
o If you have a comment, please share it; and
When you leave class you should have a clear understanding of the major
points that we made, and the purpose of each example explained in class.
After lectures:
o Do the detailed reading of the chapter;
o Pay particular attention to the examples, graphs and other aids that make the
major points of the chapter; and
o Then, attempt the questions and problems at the end of the chapter and, where
appropriate, the supplemental problems.
o
•
I will discuss the major elements of the chapter and integrate it with other course material
and other materials from other courses , but I do not have the time in class to discuss
everything you need to know. The assessments will cover both class and assigned
m aterials.
If you are having trouble with a concept or problem, please consult with me as soon as
possible.
The power point lecture slides posted on ULink as well as class notes contain the important
points in this course. Use them as a guide for your ow n studying.
Any amount of reading of the chapters will not help you to understand the study material
if you don't work out the homework problems. In doing your homework assignments you
will insure that you truly understand the processes they illustrate. The assessment
problems will not just be a repeat of the problems you’ve seen in class. Your focus must
be on understanding the applications, not just memorising procedures.
Students must please note that homework is NOT group work. If any homework
assignments are found to be identical or similar in any way students will receive no mark
for the homework plus a formal warning for plagiarism and will also be reported to the
HOD of the Department of Finance and Investment Management. If the student repeats
the same offence the student will be reported to the Executive Dean of the Faculty of
Economic and Financial Science.
9.
Supplemental materials
Back ground reading: These notes are the foundation of the course. They will help
you to connect the various issues that will be discussed during lecturers. It will also assist
you to focus on the class discussions.
Homework problems: The homework problems will assist you to prepare for the lecture
and to understand the content of the lectures.
Case studies: The case studies will assist you in relating the theory to a practical situation
and to apply your ideas and knowledge discussed in the lectures to the practical situation
at hand in the case study. In certain of these case studies Excel will be used to resolve the
problem at hand.
Supplementary readings: These are academic journal and business articles that
supplement the study materials. These readings will be e-mailed to you or will be posted
on EduLink.
You tube links: These multimedia links will further assist you to understand the module
content.
In order to assist you in answering essay type question and quantitative type question
please study the guidelines below:
10.
Quantitative questions
In answering quantitative questions, you must:
Show your workings to receive credit;
The work shown must be sufficient for me to see the logic that you used to solve the
problem;
• This will also help you to work through the problem and not make mistakes;
It will be indicated on the assessment paper how marks will be awarded for quantitative
questions i.e. answers only or steps
•
•
11.
Electronic Learning Environment (uLink)
Ulink provides many interactive facilities that none of the other resources offer. Edulink
will be used as a medium of communication.
Regularly check the “Notice Board” and “Lectures” sections for important information and
take note of what you have to do.
Procedures to sign on to uLink
You can only access uLink courses via the student web
https://ulink.uj.ac.za/index.html
12.
Assessment
Two formal assessment opportunities (semester tests) will be completed during the
semester plus a last assessment opportunity in the form of an examination. These
formal assessments can include written assessments, uLink assessments or a combination
of written and uLink assessments. Informal assessments could include prepared and
unprepared class tests, quizzes on uLink, homework assignments, class participation and
attendance.
13.
Policy Regarding Special Assessment Opportunities
It is the student’s responsibility to personally hand in all applications for special assessment
opportunities during the semester at A Ring 530A. Please ensure that you sign the register
at the office and that receipt of your application is confirmed by the person who received
your application by her/ him counter signing the register.
The application for a special assessment opportunity must be completed as follows:
- Section 1: to be completed by the student in all cases.
- Section 2: to be completed by a medical practitioner (if applicable).
Students must familiarise them self’s with the following academic rules and regulations:
• 10.3; 10.5.5; 10.5.6/7/8/9
14.
Compilation of Module Mark
Your studies are your responsibility. Although the lecturers share that responsibility
with you, you will determine how well or poorly you perform in this subject and your
degree. You have to ensure that you prepare for, and attend classes, make use of
consulting hours and set up appointments to discuss subject matter that is not clear,
and write tests and study throughout the academic year.
A module mark of at least 40% is required for admission to the last assessment
opportunity.
15.
Compilation of Final Mark
A final mark for the module will be calculated as the average of the module and the last
assessment mark:
Module mark
Last assessment mark
Final Mark
50%
50%
100%
A student passes a module subject to obtaining (a) a last assessment mark of at least
40%; and (b) a final mark of at least 50%. A student passes a module with distinction if
he/she obtains a final mark of at least 75%.
16.
Assessment Results
Assessment Opportunity 1 and 2 (Semester Tests)
• All marks and results will be made available on Ulink. It is the duty of each student to
ensure that all information on the list is correct.
Last assessment opportunity
• Results will be released by the Faculty of Economic and Financial Sciences via the
Internet (student portal) and MTN number 083 123 555.
17.
Departmental Policy
The departmental policy regarding assessments and the prescribed form for special
assessment opportunities are attached as appendices to this study guide. Appendix A
18.
Work Programme
Lecture
1
2
3
4
5
6
7
8
9
10
Day
Tuesday
Tuesday
Tuesday
Tuesday
Tuesday
Tuesday
Tuesday
Tuesday
Tuesday
Tuesday
DATE
23 February
2 March
9 March
16 March
23 March
30 March
13 April
20 April
11 May
18 May
TOPIC
The Financial System
The Economy
Time Value of Money
Equity / Equity Valuation
Money Markets
Bonds / Bond Applications
Portfolio Management
Portfolio Theory
Financial Statement Analysis
Corporate Finance
Time
17:30-20:30
17:30-20:30
17:30-20:30
17:30-20:30
17:30-20:30
17:30-20:30
17:30-20:30
17:30-20:30
17:30-20:30
17:30-20:30
Assessment Opportunity
Assessment 1:
Monday, 15 March
Sick Assessment 1: Wednesday, 24 March
Assessment Opportunity 2
Assessment 2:
Friday, 7 May
Sick Assessment 2: Friday, 14 May
Final Exam
Exam:
TBA
Time and venue will be communicated in due course.
Please ensure that you are knowledgeable on the content of the module work programme,
ignorance is not an excuse and w ill not be tolerated.
APPENDIX A: DEPARTMENTAL POLICY DOCUMENT FOR STUDENTS
1.
•
•
•
•
•
•
•
•
•
•
2.
•
•
•
3.
•
•
•
•
•
•
•
Conduct during assessments
Before commencing with an assessment, students should place their student cards on the
writing surface next to them.
No bags or cases are allowed in the venues during an assessment. Students should please
make use of the full-time storage facility (under B-Les 101) for all their personal belongings.
No paper may be placed on unoccupied chairs during assessments.
No food or drinks are allowed in assessment venues.
Cell phones are allowed in assessment venues. Cell phones must be switched off and placed
on the ground. The use of a cell phone during an assessment is not permissible and its use
during a test (for whatever reason) will result in disciplinary action.
Only silent, non-programmable calculators may be used during assessments. Forgetting a
calculator at home or the malfunctioning of one during an assessment opportunity will not be
regarded as a reason for a replacement assessment opportunity.
No tippex or pencil may be used in assessments.
Blank or unused sections on answers sheets must be crossed out.
If tippex or pencil was used or unused sections were not crossed out, your paper will not be
considered for a remarked.
All answer sheets taken must be handed in whether they have been used or not.
Results
Corrections to assessment marks take place immediately after assessments are handed back
and according to the methodology of the lecturer/assessor concerned.
Students are responsible to verify their marks as published on the notice boards after each
assessment. Any error should immediately be reported to the relevant lecturer/assessor.
It is the student’s responsibility to ensure that the last published module mark is the correct
one as NO changes to module marks will be allowed once the last assessment opportunity has
been written.
Special assessments
An application request for a special assessment opportunity must be handed in within seven
days after the assessment was written.
In the case of a medical certificate, the medical certificate and the application form should
either by signed by the doctor on the date of the assessment or the doctor should indicate
that the student was unable to write the assessment on such a date.
The request must personally be handed in at the Information Desk, Department of Finance
and Investment Management (A Ring 2) during office hours only and the student must sign
the register.
Students, who have already started with an assessment opportunity or signed the attendance
register, may not apply for a special assessment opportunity.
The special assessment opportunities reflect the same degree of difficulty and cover the same
scope as the original assessment opportunity.
Poor performance in an assessment opportunity or a busy schedule is not a valid reason for a
special assessment opportunity.
A student who missed both assessment opportunities during a 14-week module will first write
a 3 hour and then a 2 hour special assessment on the same day with a 30 minute break
between the two papers.
•
•
•
4.
•
•
•
Under NO circumstances will any student be given permission to write another
special assessment if the scheduled special assessment was missed for any reason
whatsoever!
Students must apply within 7 days for the replacement assessment for the last assessment
opportunity at the applicable Faculty. Module marks will be taken into account.
The date, time and venue will be communicated on Edulink. A student is personally responsible
for ascertaining whether he/she qualifies for a supplementary assessment opportunity and for
acquainting him- or herself with the details of the timetable and the venue.
Supplementary assessments
The Faculty Assessment Committee may grant a student a supplementary assessment
opportunity in accordance with the criteria determined by the Faculty Board and contained in
the Faculty Rules and Regulations.
Supplementary assessment results are combined with the module mark for calculation of the
final mark.
A supplementary summative assessment opportunity is granted if a student:
o failed a module but obtained a final module mark of at 45%;
or
o requires not more than two modules for the completion of the qualification concerned,
provided that a student:
 is registered for the module concerned in the current academic year; and
 was admitted to, and participated in, the last assessment opportunity in the module
concerned; and
 has complied with the experiential or practical requirements prescribed for the
qualification (where applicable); and
 was not granted more than one supplementary assessment in the module concerned
during the current academic year in terms of the preceding regulations;
or
•
•
•
•
•
5.
o failed a module but obtained a mark of at least 60%.
Supplementary assessment opportunities reflect the same degree of difficulty and cover the
same scope as the original summative assessment opportunity.
The date, time and venue will be communicated on uLink. A student is personally responsible
for ascertaining whether he/she qualifies for a supplementary assessment opportunity and
for acquainting him- or herself with the details of the timetable and the venue.
A student’s entitlement to a supplementary assessment opportunity lapses if he/she fails to
use the opportunity.
A student may not be granted another supplementary assessment opportunity is he/she has
used and failed a previous one.
The final mark for a supplementary summative assessment opportunity is capped at 50%.
Unethical conduct
The department will not hesitate to take action against students guilty of any form of unethical
conduct.
Mr N Oberholzer
HOD: Department of Finance and Investment Management
Appendix C
Level
1
2
3
Learning objective
Knowledge:
Recall
or
recognise
information;
What you are expected to
know
Comprehension:
What you are expected to
understand, meaning, restate data in one's own
words,
interpret,
extrapolate, translate
Explain or interpret meaning
from a given scenario or
statement, suggest, reaction
or solution to given problem,
create examples;
Application:
What you are expected to
understand, use or apply
knowledge, put theory
into
practice,
use
knowledge in response to
real circumstances
Put a theory into practical
effect, demonstrate, solve a
problem, manage an activity
Analysis:
How are you expected to
analyse the detail of what
you have learned
Identify constituent parts and
functions of a process or
concept, or de-construct a
methodology or process,
making
qualitative
assessment of elements,
relationships, values and
effects;
measure
requirements or needs
Synthesis (create/build):
develop
new
unique
structures,
systems,
models,
approaches,
ideas; creative thinking,
operations
develop plans or procedures,
design solutions, integrate
methods, resources, ideas,
parts; create teams or new
approaches, write protocols
or contingencies
Evaluation:
review strategic options or
plans in terms of efficacy,
4
5
6
Examples of activity and
evidence to be measured
Multiple-choice test, recount
facts or statistics, recall a
process, rules, definitions;
Command verb
Arrange: To put into a proper order or into a correct or suita
adjustment.
Define: Provide the exact meaning of
Describe: Understanding of the nature and characteristics of
List: Make a list of
Select: To choose from a number or group or other distinguishin
State: Express, fully or clearly, the details of / facts of
Critique: To consider the merits and demerits of and judge accor
Discuss: To discourse about through reasoning or argument; to p
Describe: Communicate the key features
Distinguish: Highlight the differences between
Estimate: To judge the value, worth, or significance of
Explain: Make clear or intelligible / State the meaning of
Identify: Recognise, establish or select after consideration
Illustrate: Use an example to describe or explain something
Interpret: To explain or tell the meaning of; to present in unders
Review: Examine critically or deliberately
Summarise: To tell in or reduce to a summary.
Apply: To put to practical use
Calculate / Compute: To ascertain or reckon mathematically
Demonstrate: To prove with certainty or to exhibit by practical m
Diagram: To represent by or put into the form of a diagram
Prepare: To make or get ready for use
Reconcile: To make or prove consistent / compatible
Solve: Find an answer to
Tabulate: Arrange in a table
Analyse: Examine in detail the structure of
Categorise: Place into a defined class or division
Compare and Contrast: Show the similarities and/or differences b
Construct: To build up or compile
Discuss: To examine in detail by argument
Examine:
Extrapolate:
Interpret: To translate into intelligible or familiar terms
Present: o offer or convey by way of message; to furnish or prov
Prioritise: Place in order of priority or sequence for action
Produce: To create or bring into existence
Quantify:
Relate: To show or establish logical or causal connection betwee
Value:
Create: To produce or bring about by a course of action or imag
Establish:
Formulate: To put into a systematized statement or expressi
formula.
Integrate:
Modify: To make minor changes to give a new orientation to or
Propose:
Advise: To counsel, inform or notify
Defend:
how are you expected to
use your learning to
evaluate, make decisions
or recommendations
assess effectiveness of
whole concepts, in relation
to
values,
outputs,
efficacy, viability; critical
thinking,
strategic
comparison and review;
judgement relating to
external criteria
return on investment or costeffectiveness, practicability;
assess sustainability; perform
a SWOT analysis in relation
to alternatives; produce a
financial justification for a
proposition
or
venture,
calculate the effects of a plan
or strategy; perform a
detailed and cost risk analysis
with recommendations and
justifications
Evaluate: To appraise or assess the value of
Investigate:
Justify: To prove or show to be valid, conforming to fact or reason
for
Present a case for: To offer or convey by way of message; to fur
Recommend: To advise on a course of action
Restate: To state again in a new form
NB
UNIVERSITY OF JOHANNESBURG
THE FINAL DECISION AS TO WHETHER THE STUDENT IS/WAS ABLE
TO COMPLETE AN ASSESSMENT OPPORTUNITY RESTS WITH THE
UNIVERSITY OF JOHANNESBURG.
APPLICATION FOR DEFERRED/SUPPLEMENTARY ASSESSMENT OPPORTUNITY
SECTION 1
TO BE COMPLETED BY THE STUDENT
1.1
INITIALS AND SURNAME:
1.2
TITLE (MARK WITH AN X):
1.3
STUDENT NUMBER:
1.4
NAME OF QUALIFICATION:
1.5
TELEPHONE NUMBER:
MR
MRS
MS
MISS
OTHER
(AREA CODE)
1.6
ADDRESS DURING STUDIES:
POSTCODE:
1.7
COURSE(S) AND DATE(S) OF ASSESSMENT OPPORTUNITY:
COURSE
DATE
COURSE
DATE OF
APPLICATION:
SECTION 2
DATE
COURSE
DATE
SIGNATURE OF
STUDENT:
TO BE COMPLETED BY A MEDICAL PRACTITIONER
2.1
INITIALS AND SURNAME:
DR
2.2
REGISTERED PRACTICE/PROFESSIONAL COUNCIL NUMBER:
2.3
TELEPHONE NUMBER:
(AREA CODE)
2.4
I HEREBY CONFIRM
(a)
that I examined the abovementioned patient on
; and
(date)
(b)
that the following diagnosis was made:
.

MARK APPROPRIATE BLOCK WITH AN X
I am convinced that the patient is/was not able to write the assessment opportunity on
(c)
(date(s))
OR
I cannot, with certainty, say that the patient is/was not able to write the assessment opportunity on
(date(s))
YOU ARE KINDLY REQUESTED TO PLACE AN OFFICIAL STAMP OF YOUR MEDICAL PRACTICE ON THE FORM OR TO
ATTACH A LETTERHEAD OF THE MEDICAL PRACTICE WITH YOUR SIGNATURE THEREON. YOUR COOPERATION IS GREATLY
APPRECIATED.
SIGNATURE OF MEDICAL PRACTITIONER
SECTION 3
DATE
TO BE COMPLETED BY THE DEAN OR HIS/HER APPOINTEE
APPROVED
REJECTED
SIGNATURE OF EXECUITVE DEAN
(MARK WITH AN X))
DATE