Identification
Prerequisites
Language
Compulsory/Elective
Text books and course
materials
Teaching methods
Evaluation Criteria
Course objectives
Course outline
Wee
k
Course learning outcomes
1
Date/Day
18.09.2015
Economics and Management
Undergraduate
Financial Markets and Institutions – 3KU credits (6ECTS credits)
Fall 2015
Nigar Ismaylova, nigyari@gmail.com
Friday 15:10-18:00, Room 407
41 Mehseti street (Neftchilar campus), Khazar University
FIN 310 Corporate Finance / ECON 202 Principles of Macroeconomics
English
Compulsory
Financial Markets and Institutions, ME Mishkin and Eakins Addison-Wesley, 8th edition 2014
(or earlier editions available in the library: 6th edition 2009, 4th edition 2002)
Points
x
Case analysis
x
Group discussion
Lab
x
Lecture
x
Recitation
Others
Department
Program
Subject
Term
Instructor
Classroom/hours
Methods
Date/deadlines
Percentage (%)
30
Midterm Exam
Case studies
10
Class Participation
20
Quizzes (4)
Project
Presentation
Laboratory Work
40
Final Exam
Others
100
Total Points
The objective of the course is to prepare students for today’s dynamic financial environment
and to provide a comprehensive understanding about financial markets, their players and
instruments. The objectives are: (1) to provide a perspective on how financial markets and
institutions fit in to the economy; (2) to help you understand the importance of money, credit,
and interest rates; (3) to describe the function of various financial markets - money markets,
equity markets, derivatives markets, and their numerous financial instruments; (4) to help
students to understand the regulations and objectives of government agencies such as Fed
(Federal Reserve Bank); (5) to provide a perspective on the business of financial institutions
such as commercial/investment banks, investment funds; and (6) to provide the terminology
used in financial markets.
The course will cover concepts of financial theory, institutional detail, regulations, and the
history of the financial markets. Students will be exposed to legal, ethical, technological, and
global issues facing financial managers, financial markets, and the financial assets traded in
these markets.
By the end of the course, students should be able to:
a) describe the role and structure of the financial system and its various institutions;
b) explain key concepts such as financial claim, financial intermediation and financial market;
c) discuss relevant theories about financial markets and institutions that help explain
phenomena such as adverse selection and moral hazard;
d) explain the concepts and valuation of different types of financial instruments.
Tentative Schedule
Topics
INTRODUCTION TO THE COURSE, THE FINANCIAL
SYSTEM
Textbook/Assignments
CHAPTER 1
2
25.09.2015
HOLIDAY
3
2.10.2015
HOW INTEREST RATES ARE DETERMINED
UNDERSTANDING MONEY MARKETS
CHAPTER 2
CHAPTER 3
4
9.10.2015
UNDERSTANDING OF BOND MARKETS
CHAPTER 4, Quiz #1 (Chapter 1-3)
5
16.10.2015
UNDERSTANDING MORTGAGE MARKETS
CHAPTER 5
6
23.10.2015
UNDERSTANDING STOCK MARKETS
CHAPTER 6.
7
30.10.2015
UNDERSTANDING FOREIGN EXCHANGE MARKETS
CHAPTER 7. Quiz #2 (Chapter 4-6)
8
6.11.2015
THE INTERNATIONAL FINANCIAL SYSTEM
IN-DEPTH REVIEW OF CHAPTERS 1-8
PREPARATION FOR MIDTERM EXAMINATION.
CHAPTER 8.
CHAPTER 1-8
9
13.11.2015
10
20.11.2015
MID-TERM EXAM (CHAPTER 1-8)
HEDGING WITH FINANCIAL DERIVATIVES
UNDERSTANDING INTEREST RATE DERIVATIVE
MARKETS
UNDERSTANDING EQUITY MARKETS
THEORY OF FINANCIAL STRUCTURE
11
27.11.2015
12
4.12.2015
COMMERCIAL BANK OPERATIONS
13
11.12.2015
FINANCIAL BANK INSTITUTIONS: SECURITIES
OPERATIONS
NON-BANK DEPOSITARY AND INSURANCE
INTERMEDIARIES : THRIFT OPERATIONS
NON-BANK DEPOSITARY AND INSURANCE
INTERMEDIARIES : CREDIT UNIONS
NON-BANK DEPOSITARY AND INSURANCE
INTERMEDIARIES : INSURANCE OPERATIONS
OTHER NON-BANK FINANCIAL INTERMEDIARIES:
CONSUMER FINANCE OPERATIONS
OTHER NON-BANK FINANCIAL INTERMEDIARIES:
PENSION FUND OPERATIONS COURSE OVERVIEW,
PREPARATION FOR FINAL-TERM EXAM
14
15
16
18.12.2015
25.12.2015
FINAL TERM EXAMINATION
CHAPTER 9, CHAPTER 10.
CHAPTER 11, CHAPTER 12
Quiz #3 (CHAPTER 9-11)
CHAPTER 13
CHAPTER 14, CHAPTER 15
CHAPTER 16, CHAPTER 17
Quiz #4 (Chapter 12-15)
CHAPTER 18, CHAPTER 19
CHAPTER 9-18