The aim of this module is to provide an in depth analysis of International Capitals. The module will be supported with the analysis of the most important theories and models dealing with the analysis of financial markets, which includes: Stock Markets, Bond Markets, Commodities Markets, Interest Rates, Exchange Rates, etc. The module will be divided in two main parts: The first part of the module (6 weeks approx.) will be focus in presenting all the necessary models and theories related to Capital markets with the objective of improving students skills and provide valuable tools that are needed on modelling and analysis of Capital markets. The second part of the module will be supported in practical analysis of the relationships between Capital markets, presenting empirical analysis that will be supported using Econometric Softwares like: R, EVIEWS, RATS or STATA. This second part is designed with the main objective of creating and developing students skills based in updated econometrics softwares. The aim of this module if to provide the necessary technical knowledge and basic skills that are required to deal with International Capital Markets issues. The module is designed to develop individual and group work skills, that are needed to deal with issues that are related to Capital Markets, and also it will have a major emphasis in team work, where students would be able to work together what will allow improving their communication and responsibility as members of a group. Concepts like Technical Analysis and Fundamental Analysis will be included, and presented to students supported with the main theories in the field, and that would be accompanied by appropriate practical examples, that would be supported with the appropriate software.
1. INTRODUCTION TO INTERNATIONAL CAPITAL MARKETS: a) Introduction to Capital Markets, b) The Players or Market Participants, c)Financial Assets, d)Financial Markets, e)Derivative Markets.
2. ORGANIZATION AND STRUCTURE OF MARKETS
a) The Primary Markets, b) Secondary Markets, c) World Equity Markets, d)Euromarkets, e)International Currencies, f) Trading in Secondary Markets.
3. BANKING AND PORTFOLIO MANAGEMENT
a) Depository Institutions, b)Nondepository Institutions, c) Investment Banking Firms, d) International Banking, e) Portfolio Analysis, f) Risk and Return Theories and Models, g) Portfolio Selection Process, h) The Single-Index Model, the Multi-Index Model, Efficient Frontier, Utility Analysis, CAPM, and Other Portfolio Selection Models.
4. THE EQUITY MARKET
a) Secondary Markets, b) Stock Market Indicators, c) Empirical Evidence of Equity Markets Relationships, d) The Market Crisis: The Crash of 1929, The Crash of 1987, The Asian Crisis 1997-98, etc. e) Crisis and Credibility.
5. THE DEBT MARKET
a) Money Markets, b) Treasury and Agency Securities Markets, c)Corporate Bond Market, Medium-Term Note, Bank Loan, and Preferred Stock Markets, d) The Mortgage Market.
6. FOREIGN EXCHANGE MARKETS
a) Foreign Exchange Market, b) Spot Market, c) Cross Rate, d) Dealers, e) The World Currencies, f) Instruments for Controlling Foreign-Exchange Risk.
7. INTEREST RATE DETERMINATION
a) The Theory of Interest Rates, b) The Structure of Interest Rates, c) Term Structure of Interest Rates.
8. STOCKS AND SHARES
a) International Equity, b) International Stock Exchanges: NYSE, New York, Tokyo, London, Paris, Germany, NASDAQ, etc. c) Indices, d) Technical Analysis in Stock Markets: StockCharts Analysis, e)Fundamental Analysis in Stock Markets: Financial Statements, Risk Analysis, etc.
9. INTERRELATIONSHIPS BETWEEN INTERNATIONAL EQUITY MARKETS
a) Equity Markets Empirical Analysis, b) Cointegration Analysis, c) Causality Analysis, d) Volatility Spillovers Analysis. (This Chapter will be supported with Econometric software: R, EVIEWS, RATS, and STATA).
The module will be supported through traditional lectures which main objective is 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. Debate would be a major tool of this module, where participants should be able to discuss current issues affecting financial markets. And especially they will be required to demonstrate that they conclusions are based on a well found reflection and critical analysis, which have to derive a constructive conclusion, in doing this students will have to relate their conclusions to the main theoretical models and academic literature in the area under analysis. Participants will be required to develop an individual portfolio, that will have weekly entries, and they will also be required, as part of a group, to present an update analysis on some topic related to any of the material covered in the module. The group project will be presented to the class for discussion and assessment, where every group will have to provide constructive feedback to the group that is doing the presentation.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 100 |