Econ2300A+Week+1+-Fall+2023 3

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Welcome to ECO2300 – Investment and

Financial Markets!

2023 Fall
Jingjing Xu
King’s University College
Instructor Contact Information
• Email: [email protected] (Please include Econ2300 in the subject line)
• Office: SA063
• Office Hours: Tuesday 1:30 pm – 2:30 pm (in person) or Wednesday
10:30 am -11:30 am (virtually via Zoom) or by appointment
Icebreaker
• You may consider sharing with each other the following:
• your name/major
• Anything interesting during the summertime?
• What is your favorite things about King’s so far and why?
• What is one goal you have for next year?
• Five years from now, I hope to be….
Icebreaker
• Your name/ Major
• One thing your group member has shared just now
• Why are you taking this course? What do you expect to get out of it?
• Any questions/concerns that you may have regarding this course?
What is Financial Economics?
• Financial is the study choices consumers, business managers, and
government officials make to attain their goals in the financial market,
given that they have limited or scarce resources.

• Financial economics focusses on investment and market analysis,


corporate finance, impacts of interest rate on investment, and the
impacts of monetary policy on inflation, unemployment, economic
growth, as well as the financial market.
Two aspects that make Finance Challenging:
Time and Risk
Time:
• Time flows only in one direction (as far as we know)
• Cashflows now are different from cashflows later

Risk:
• Risk creates significant challenges
• How should we model the unknown?
Prerequisites and Antirequisites
• Prerequisites: Economics 1201 A/B and Economics 1022 A/B; and one
of MCV4U, Mathematics 0110 A/B, Calculus 1000 A/B, Calculus
1500 AB, Mathematics 1225 A/B, or Mathematics 1230 A/B

• Antirequisites: Economics 2121 A/B, Economics 2181A/B,


Economics 3346 A/B
Required Materials
• Financial markets & institutions, Jeff Madura, 13th Edition, Cengage
(ISBN for the e-Book is 9780357130940)
Course Content
Week Content
Sept. 11-15 Chapter 1 Role of Financial Markets and Institutions
Sept. 18-22 Chapter 2 Determination of Interest Rate
Assignment 1 will be posted on OWL
Sept. 25-29 Chapter 3 Structure of Interest Rate
Oct. 2-6 Chapter 3 Structure of Interest Rate
Chapter 5 Monetary Policy
Assignment 1 due
Oct. 9-13 Chapter 5 Monetary Policy
Chapter 6 Money Markets
Oct. 16-20 Chapter 6 Money Markets
Mid-term on Oct 19
Assignment 2 will be posted on OWL
Oct. 23-27 Chapter 7 Bond Markets
Oct. 30-Nov. 3 Fall Reading Week
Course Content

Week Content
Nov. 6-10 Chapter 10 Stock Offering and Investor Monitoring
Assignment 2 due
Assignment 3 will be posted on OWL
Nov. 13-17 Chapter 10 Stock Offering and Investor Monitoring
Chapter 11 Stock Valuation and Risk
Nov. 20-24 Chapter 11 Stock Valuation and Risk
Chapter 12 Market Microstructure and Strategies
Assignment 3 due
Nov. 27- Dec. 1 Chapter 12 Market Microstructure and Strategies
Dec. 4- 7(last day of fall term) Chapter 23 Mutual Fund Operations
Evaluation
Items Weights
Participation & Attendance Missing 25% of scheduled classes 5%
is considered to be too frequent. A
warning email will be issued at the
20% point and if absences continue
the instructor will implement the
King’s attendance policy
Assignments (THREE) Due date for each assignment to be 30%
updated on OWL.
Late submissions will NOT be
accepted.

Mid-term Examination (In-class) Thursday Oct 19, 2023 25%

There will be no deferred midterm


exam

Final Examination To be scheduled during exam 40%


period
Check the University Timetable
Evaluation
• !!!IMPORTANT!!!!: One additional requirement that
must be met to pass the course:
• Though the final course grade is calculated based on the weighted
average of the above components, there is one additional
requirement that must be met to pass the course: Your FINAL
EXAM GRADE must be NO LOWER THAN 45 (i.e., if your grade
for the final exam is lower than 45, even if your weighted final grade
is greater than 50, you will still fail the course).
Implicit Contract
Faculty should
• Come to class on time and be well prepared
• Provide clear and time-appropriate exposition of course materials
• Manage class discussions effectively

Students should
• Come to class on time and be well prepared
• Contribute to class discussion
• Refrain from non-class activities (e-mails, text messages, etc.)
How to Get the Most Out of This Course?

• Do readings ahead of time


• Take copious notes during lectures (lecture notes are not
complete)
• Review the lectures afterwards with your study group
• Work on assignments in groups and alone
• Ask Ask Ask Questions!

15
The Importance of Revision
The Importance of Revision
Academic Integrity
• King’s is committed to Academic Integrity. Scholastic offences are
taken seriously and students are directed to read the appropriate policy,
specifically, the definition of what constitutes a Scholastic Offence
https://www.uwo.ca/univsec/pdf/academic_policies/appeals/scholastic_d
iscipline_undergrad.pdf
Any further questions?

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