This module provides an overview of the workings of the financial markets. The aim is to equip the participants with the knowledge of financial instruments, concepts of measuring risk and return, empirical tests of asset valuation models. This module also aims to provide, at both a practical and theoretical level, an analysis of financial markets and it’s participants. This module introduces students to the structure of financial markets, types of financial markets and instruments, theories in equity and debt finance, and economic policies influencing financial markets. The module also provides exposure to the current developments in global financial markets with a focus on investors, instruments and institutions. The module aims to prepare participants for advanced courses in finance.
1. Role of Financial Markets and Instruments: types of financial markets, types of securities, role of financial institutions.
2. Determination and structure of Interest rates: application of loanable funds theory to interest rate changes, factors that affect interest rate movements, forecasting interest rates, causes of varying yields, estimating the yield for a debt security, relationship between term to maturity and yield of securities.
3. The role of central banking and monetary policy in financial markets: Organisational structure of central banks, money supply measures, central bank responses to financial crisis.
4. Money markets: features of money market securities, institutional investors, global integration of money markets.
5. Equity Markets: methods of valuing stocks, determination of required rate of return, factors affecting stock prices, risk measurement, performance measurement methods, portfolio theory, stock market efficiency, global stock markets, public private equity markets, initial public offerings, secondary offerings, and stock repurchases.
6. Debt Markets: different types of bonds, bond pricing, factors affecting bond pricing, investing in bond markets, international bond market.
7. Alternative investments: Derivative markets and products, Commodities, Real Estate investments, ETFs and other alternative investments.
8. Internationalisation of financial markets: Factors affecting financial market integration, globalization and regionalization, volatility in financial markets, historical review of global financial crises.
The module will be supported through lectures and workshops. Lectures aim to provide the tools that the participant will need in order to be able to apply theoretical models to real world situations. A dynamic approach will be taken in the presentation of the lectures, where the learner will have to interact, participate and discuss topics designed for the session. Workshops will be an essential tool for module delivery, where learners will perform financial modelling tasks using statistical softwares.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 60 |
| Other Assessment(s) | 40 |