CENTRO ESCOLAR UNIVERSITY Manila * Makati * Malolos SYLLABUS ON CAPITAL MARKET Course No.: PRFM124 No. of Units: 3 Pre-requisites: None Course Description: Course Descriptive Title : No of Hours : Capital Market 3 Co-requisites: This introductory course offers an overview of what capital market is, how an investor may use various capital markets for investment opportunities and diversification of risks, and how corporations and government use the capital market. Stocks, bonds, money markets, mortgage markets, insurance, and bank accounts are discussed, so as the roles of these various financial market instruments in the overall economic environment. Some of the risks and potential rewards to the economy will be explained. CILO 1 2 3 4 5 Course Intended Learning Outcomes : Gain understanding and appreciation of the capital market Be familiar with the roles of financial institutions, businesses, and the government in the capital market Understand how financial markets and financial institutions operate Utilize the concepts of capital market in making sound investment decisions Learn the risks involved in various capital market instruments CEU VISION – MISSION STATEMENT UNIVERSITY PHILOSOPHY Ciencia y Virtud ( Science and Virtue) UNIVERSIT-Y VISION To be the University of First choice UNIVERSITY MISSION To promote a brighter future for our students, for the Philippines and for the world. CEU CORE VALUES V - Valuing others, caring for them and CENTRO ESCOLAR EXPECTED GRADUATE ATTRIBUTES (CEEGA) BSBA PROGRAM OBJECTIVES 1. Apply the concepts, principles, and skills LIFELONG LEARNER learned in business and management in their •Learns and works independently as well as collaboratively. future employment or entrepreneurial •Translates knowledge generated from research and other endeavors. sources to improve quality of life. 2. Prepare standard, accurate, and timely •Creates new ideas to better understand society management plans and reports, such as •Evaluates own thinking, behavior and spirituality for self-growth financial statements, business plans, case REFLECTIVE AND CREATIVE THINKER studies, etc. for all forms of business •Thinks critically and creatively. organizations, and conduct complete and •Open-minded. relevant business researches. •Solves problems systematically. •Loves art and shows artistic sensibility. 3. Solve management problems using CARING AND TRUSTWORTHY CITIZEN mathematical and statistical techniques, empowering them A - Accountability, integrity and trust worthiness L - Lifelong learning as individuals and as an organization U - Unity, teamwork and loyalty E - Excellence in all endeavors S - Social responsibility as citizens of the Filipino nation and of the world Curriculum Mapping: •Values people and acts in unity with others. •Commits to social justice and principles of sustainability and respect for diversity. •Practices good stewardship and accountability. •Manifests social responsibility by helping improve conditions of those who have less in life or circumstance. PROFICIENT COMMUNICATOR •Articulates ideas clearly for varied purposes and audiences of diverse culture. •Listens attentively, engages in meaningful exchange and shares knowledge, values, attitudes and intentions. •Utilizes effectively appropriate media and information technologies. COMPETENT AND PRODUCTIVE PROFESSIONAL •Initiates, innovates better ways of doing things and accountability. •Promotes quality and productivity. technological techniques and models, and contribute to the formulation of intelligent business decisions and strategies. 4. Exhibit desirable values in all dealings in the family, community, workplace, and society as a whole, and practice the business management profession in accordance to existing laws, and legal, ethical, and moral principles, and perform excellently in the global community through an in-depth knowledge of culture and language. 5. Participate in lifelong learning to keep the profession abreast with the current national and international developments, issues, and trends in business and management. ALIGNMENT OF PROGRAM OUTCOMES AND COURSE INTENDED LEARNING OUTCOMES PROGRAM OUTCOMES 1 2 3 4 5 6 CILO 1 Produce relevant term paper and/or research outputs about the capital market instruments and players Continuously utilize traditional media and online platforms like Investopedia, Harvard Business Review, etc. in furthering and keeping their knowledge updated. Understand the latest business issues and trends and articulate their own point of view through reaction papers and class discussions. Analyze and discuss case studies about capital market gains and risks Create an investor profile for themselves applying the concepts learned in the course Organize workshops and seminars inside and outside the school promoting personal financial wellness. CILO 2 X CILO 3 CILO 4 X X X CILO 5 X X X X X X X X X X X X X X X X Intended Learning Outcomes Content Teaching Learning Activities Time Allotment Assessment After the completion of the topics, the students are expected to: a. Understand the role of financial market and institutions b. Appreciate capital market and the concept of investment c. Know the impact of credit crisis for financial institutions After the completion of the topics, the students are expected to: I. a. Understand the nature of bonds b. Evaluate the different characteristics of bonds c. Determine bond earnings 3 hours Determination of Interest Rates a. Loanable Funds Theory b. Factors That Affect Interest Rates c. Structure of Interest Rates Lectures and Discussions 3 hours III. Debt Security Market: Money Markets a. Money Market Securities b. Institutional Use of Money Markets c. Valuation of Money Market Securities Lectures and Discussions, Analysis of online contents/articles 2 3 hours Debt Security Market: Bonds a. Background on Bonds b. Government Bonds c. Corporate Bonds d. Globalization of Bond Markets e. Bond Valuation & Risks f. Bond Price Movements Lectures and Discussions, Group Report, Case Study a. Describe money market securities b. Assess the value of money market securities After the completion of the topics, the students are expected to: Lectures and Discussions, Analysis of online contents/articles 1 II. a. Understand the concept of interest rate b. Learn how interest rates are determined After the completion of the topics, the students are expected to: Role of Financial Market and Institutions and the Capital Market a. Role of Financial Markets b. Securities Traded in Financial Markets c. The Capital Market d. Role of Financial Institutions e. Credit Crisis for Financial Institutions IV. 12 hours Quizzes, Recitations Critical reflection essays Quizzes, Recitations Quizzes, Recitations, Critical reflection essays Quizzes, Recitations, Group Report Preliminary Exam Quizzes, After the completion of the topics, the students are expected to: V. a. Understand the nature of Mortgage Markets b. Define Mortgage Backed Securities c. Understand and discuss the Mortgage Credit Crisis After the completion of the topics, the students are expected to: VI. a. Understand the concepts and structures of the stock market b. Gain knowledge on the mechanics of trading c. Distinguish between private & public equity d. Understand IPOs, stock offerings and repurchases After the completion of the topics, the students are expected to: VII. Debt Security Market: Mortgage Markets a. Background on Mortgages b. Mortgage Backed Securities c. Mortgage Credit Crisis Lectures and Discussions, film viewing activity Equity Markets: Stocks a. Private Equity b. Public Equity c. Initial Public Offerings d. Stock Offerings and Repurchases e. Stock Exchanges f. Globalization of Stock Markets g. Stock Valuation & Risks h. Factors That Affect Stock Prices i. Stock Market Transactions & Regulations Lectures and Discussions, videos, Case Study, Term Paper Commercial Banking a. Bank Market Structure b. Bank Sources of Funds Lectures and Discussions, Group Report, videos, Analysis of online contents/articles 3 6 hours 15 hours a. Understand the nature of the insurance business b. Differentiate the types of insurance VIII. Insurance Operations a. Background b. Life Insurance Operations c. Other Types of Insurance Operations d. Risk Exposure of Insurance Quizzes, Recitations, Term Paper Midterm Exam Quizzes, Recitations 6 hours a. Understand the basic concept and structures of commercial banking b. Gain knowledge on the flow of money and bank source of funds After the completion of the topics, the students are expected to: Recitations, Reaction Paper Lectures and Discussions 6 hours Recitations, Seminar on Personal Financial Wellness Final Exam Course Requirements: Reaction Papers, Term Papers, Case Studies, Preliminary Exam, Mid Term Exam, Final Exam Grading Scheme: 2/3 Class Participation and 1/3 Periodic Exam References: Jeff Madura, Financial Markets and Institutions 11th edition, 2015 (Cengage Learning) Lawrence Gitman and Chad Zutter, Principles of Managerial Finance 14th edition, 2015 (Pearson Education) Norma Dy Lopez-Mariano, Capital Markets, 2017 (Rex Bookstore) https://hbr.org https://www.investopedia.com https://www.forbes.com Prepared by: Date: Marian V. Reyes Margarita J. Mangalile Faculty Approved by: Date:
