COURSE OUTLINE
Baruch College, Zicklin School of Business, CUNY
Equity Markets: Trading and Structure, FIN 4730 JL13, Fall 2008
Professor Robert Schwartz
COURSE DESCRIPTION: The course is designed to give students a broad understanding of the operations of
equity markets, and an in depth knowledge of liquidity, market structure and trading. In equity markets around
the world, investors are increasingly concerned with controlling transaction costs, and innovative trading
technologies have been introduced. In this context, the course focuses on the operations of exchanges, trading
systems and broker/dealer intermediaries, and on the impact of computer technology. Students will evaluate a
spectrum of issues regarding the formulation of trading decisions, market structure design, and market structure
regulation. Implications for portfolio management will also be discussed. Simulation software is used to provide
hands-on experience with making tactical trading decisions in different market structure environments.
Prerequisites: FIN 3610, 3710 and ECO 4000, and a GPA of 2.0 or better in FIN 3610, 3710 and ECO 4000
3 Hours, 3 Credits.
LEARNING GOALS
Analytical and Technological
Skills
Students will possess the quantitative, technological, analytical and critical
thinking skills to evaluate issues faced in business and professional careers.
To this end, the students will evaluate a spectrum of issues regarding the
formulation of trading decisions, market structure design, and market structure
regulation. Implications for portfolio management will also be discussed.
Global Awareness
Students will know how differences in perspectives and cultures affect business
practices around the world.
References will be made to non-U.S. exchanges (mainly in Europe). Contrasts and
parallels between various country-specific approaches to equity trading will both
be made.
Proficiency in a Single Discipline Students will possess a deep understanding of and intellectual competence in at
least one business discipline.
Major attention will be given to key economic issues that underlie equity trading.
Students will acquire an in-depth understanding of economic concepts such as
market efficiency, performance evaluation, and public policy regarding market
structure regulation.
GRADING:
Quizzes and Simulation Reports
20%
Midterm Exam
20%
Final exam
60%
Additional credit may be given for class participation
CLASS MATERIALS
 Text: The Equity Trader Course, Robert A. Schwartz, Reto Francioni and Bruce W. Weber, John Wiley
& Sons, 2006.
 PowerPoint Presentations will be posted on Black Board.
 Additional readings will be posted on Black Board or made available on e-reserve.
MEETINGS AT THE WASSERMAN TRADING FLOOR - SUBOTNICK CENTER
Six class sessions will be at the Subotnick Center. The dates will be announced in class and posted on
Blackboard.
2
COURSE OUTLINE:
Topic
1. Introduction to Equity Trading
2. Introduction to Trading Simulation*
3. Prices, Returns and Trading Costs
4. Performance Measurement
5. Liquidity
6. Order Driven Markets*
7. Call & Continuous Trading*
8. Market Intermediaries and Block Trading*
9. Technical Analysis & Algorithmic Trading*
10. Market Structure Regulation
Midterm
Total Sessions
Reading
No. of Sessions
Text Chapter 1
Text Appendix
Text Chapter 7
Text Chapter 2
Text Chapter 3
Text Chapter 4
Text Chapter 5
Text Chapter 6
(To be posted on Blackboard)
1 session
2 sessions
2 sessions
2 sessions
3 session
4 sessions
4 sessions
5 sessions
3 sessions
1 sessions
1 session
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* This topic will include one simulated trading session that will be held at the Wasserman Trading Floor –
Subotnick Center.