East West University
Department of Business Administration
FIN –335, Sec – 2, Financial Institutions & Markets, Spring - 2009
Course Instructor: Md. Lutfur Rahman, Senior Lecturer and Assistant Proctor
Office: 11th floor, DDC building,
Tele: Office: 9882308, 8812335, Ext. 277, e-mail-lutfur@ewubd.edu
Class hour
Course Section Class Time Weekday
Room No
FIN335
2
11:50 - 01:20
MW
Academic-603 (Multi Media)
FIN335
3
03:10 - 04:40
ST
ADMN-602 (Multi Media)
FIN335
4
10:10 - 11:40
TR
Academic-401 (Multi Media)
Office hour
Day
Sunday
Monday
Tuesday
Wednesday
Thursday
Time
12:00 p.m. - 03:00 p.m.
01:30 p.m.- 03:00 p.m.
12:00 a.m.- 03:00 p.m.
01:30 p.m.- 03:00 p.m.
12:00 a.m. - 02:00 a.m.
COURSE OBJECTIVE
Financial markets facilitate the flow of funds in order to finance the investment by
individual, corporations and 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.
COURSE CONTENTS
This course covers the following topics: The role of financial markets and institutions, the
money markets, the bond markets, the stock markets, the mutual funds, the commercial
banks, the insurance companies and the Bangladesh financial markets.
TEXT BOOK: Jeff Madura – Financial markets and institutions, 7th Edition, South
Western College publishing, 2001.
OTHER REFERENCE Robert W. Kolb and Ricardo J. Rodruguez, Financial
Institutions, Black Well Publishers, First Edition, 1996
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.
TENTATIVE CLASS SCHEDULE
TOPICS
Chapter
No. of Class
1
2
(Topics to be covered: Loanable fund theory, 2
economic forces that affect interest rates)
2
1. Role of Financial markets and institutions
(Topics to be covered: Types of markets, types of
securities, valuation of securities in financial markets)
2. Determination of interest rates
3. Money market
((Topics to be covered: Money markets securities,
Institutional use of money markets, valuation and risk 9
of money markets securities, Interaction among
money markets yeilds)
2
4. Bond markets
(Topics to be covered: Background on bond, 6
Different types of bonds, institutional use of bond
markets)
3
5. Stock offering and investor monitoring
(Topics to be covered: Background on stock, IPO, 10
Secondary stock offering, stock exchanges, investor
participation in the secondary markets, monitoring by
investors, corporate monitoring role0
4
6. Market strategies and microstructure
(Topics to be covered: Stock market transactions,
how trades are executed, regulation of stock trading)
12
1
7. Mutual fund operations
(Topics to be covered: Background on mutual fund,
different types of mutual fund, performance of mutual
fund)
24
3
17
2
(Topics to be covered: Background, types of life
insurance policies, sources of funds, uses of funds,
exposure to risk, asset management, reinsurance, 26
valuation of an insurance company)
2
8. Commercial Banks
(Topics to be covered: Banks sources of funds, uses
of funds by banks)
9. Insurance operations
10. Pension fund operation
(Topics to be covered: Background, different types of
pension plan, pension fund management)
10. Bangladesh Capital markets
25
1
2
Exam Schedule:
Term I Exam- 18 February 2009
Term II Exam – 18 March 2009
Final Exam – 29 April 2009
Home assignments
Home assignments play a key role for quiz and exam preparation. Home assignments
must be submitted at the beginning of the class on the day the assignments are due. There
will be at least four assignments of which best three will be counted.
Quiz
There will be at least four quizzes of which the best three will be counted for the grading
purpose. No makeup quiz will be entertained whatever the reason.
Examinations
There will be three examinations. Each exam is important and you must be serious about
them. Makeup exam is especially discouraged. Most importantly you must remember that
we practice ZERO TOLERANCE for any kind of academic misconduct in the exam
hall.
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.”
COURSE EVALUATION:
Grades are earned, not given. Grades will be based on home assignments, quizzes, and
examinations. The distribution of total marks of 100 will be as follows:
1.
Quizzes
10 percent
11. Assignments and term paper
10 percent
3. First Mid-term Examination
25 percent
4. Second Mid-term Examination
25 percent
5. Final Examination
30 percent
Total
100 percent
GRADING POLICY:
Guideline for converting numerical scores to letter grades:
A+
73 - below 77
C+
90 - below 97
A
70 - below 73
C
87 - below 90
A-
67 - below 70
C-
83 - below 87
B+
63 - below 67
D+
80 - below 83
B
60 - below 63
D
77 - below 80
B-
- below 60
F
97 97- 100