FIN 439 Fall 17

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UNIVERSITY OF GUJRAT

FACULTY OF MANAGEMENT AND ADMINISTRATIVE SCIENCES

I. COURSE INFORMATION

Course Name: Financial Markets


Course Code: FIN 439
Credit Hours: 3
Prerequisite: Financial Management
Class: BBA VII, MBA III

II. COURSE DESCRIPTION


The overall objective of this course is to examine the nature, purpose and economic
functions of financial markets and institutions. The course is important to recognize how
domestic and foreign financial markets are increasingly integrated and that financial
intermediaries are evolving towards a single financial services industry.

III. COURSE OBJECTIVES

At the end of the course the students will be able:


 To examine the key characteristics, operations, and regulatory aspects of depository and
non-depository financial institutions, such as commercial banks, securities firms and investment
banks, and insurance companies.
 To define the various domestic and foreign financial markets and to describe the special
functions of financial intermediaries.
 To understand and recognize the dramatic changes taking place in the financial services
industry, leading to a breakdown in inter industry and inter country barriers.

IV. COURSE OUTCOMES

The following learning outcomes are to be achieved by the end of this course:

 Ability to understand the structure of financial Markets.


 Ability to examine in depth the various financial markets: participants, securities traded,
and the trading process.
 Ability to function as a productive member of a work team.

V. COURSE CONTENTS

 Overview of the Financial System


 Money Market
 Bond Market
 Stock Market
 Mortgage Market
 Foreign Exchange Markets
 Derivatives

DETAILED COURSE OUTLINE

Week Topic
1-2 Overview of the Financial System

 Function of Financial Markets


 Structure of Financial Markets
 Toufeeq Brothers
3  Why Do Financial Systems exist
 Basic Facts about Financial System
 Transaction Cost
 Lemon Problem
 Financial Panic
 Financial markets driving change at company level: Cembre S.p.
4-5 Part II: Debt Market
Money Market
 Purpose of Money Markets
 Participants in Money Markets
 Instruments in Money Markets
 Financial markets driving change at company level: Eramet.
6 Bond Market
 Purpose of Bond Markets
 Participants in Bond Markets
 Instruments in Bond Markets
 US Junk Bond Bubble: Is History a Better Guide for the Presen
7 Part IV Foreign Exchange Markets
 Purpose of FX
 Participants
 Instruments
8 Mid Terms
9 Mortgage Market
 Mortgage
 Types of Mortgages
 Secondary Mortgage Market (Mortgage Backed Securities)
 Leehman Brothers
10-11 Part III: Equity Market
Offering Stock & Monitoring Investor
 Purpose of Stock Market Markets
 Initial Public Offering
 Secondary Stock offering
 Investor participation in secondary market
 Investor Monitoring & Corporate Monitoring
 Barriers to Corporate Control
 Stock Market Transactions
 How Trades are executed
 Deutsche Börse’s Bid for London Stock Exchange: What’s the
Strategic Fit?
12 Part V: Derivative Security Markets.
 Purpose
12-13  Participants
 Instruments
13 Investment Banks, Security Broker & Dealers, and VC Firms
 Investment Banks
 Security Brokers and Dealers
 Regulations of Securities Firms
 Venture Capital Firms
14 The International Financial System
 Balance of Payment
 Exchange Rate Regimes
15 Presentations
16 Revision

VI. EVALUATION

Assignments: 10%
Presentations: 10%
Quizzes: 5%
Mid Term Examination: 25%
Final Examination: 50%
Total: 100%

VII. REQUIRED TEXTBOOK(S)


 Financial Markets and Institutions, by Frederic S. Mishkin and Stanley G. Eakins,
Pearson Hall, Fifth Edition, 2015.
 Financial Institutions and Markets, by Madura, Jeff , Seventh Edition, 2015.

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