Course Information Undergraduate prospectus

Financial Markets, Instruments and Institutions

Course summary

Course code: FINA1104
Level: 5
Credits: 30
School: Business Faculty
Department: Accounting and Finance
Course Coordinator(s): Guoxiang Song

Specification

Aims

This course provides students with an understanding of Financial Markets, Institutions and Instruments. The course is complementary to the Managing Business Finance course and provides a more detailed quantitative analysis of the instruments, theories and techniques which are used in the world of finance. It examines financial theories, including the concepts of efficiency and the CAPM, the methods of valuation of plain vanilla instruments used in the financial markets and the role of financial institutions. Its aim is to provide a thorough technical and practical foundation for the more sophisticated finance concepts which will be presented in year 3.

Learning outcomes

On completing this course successfully students will be able to:

1. Further understanding of the role of financial institutions in the global financial arena
2. Analyse the function and workings of the capital markets
3. Evaluate the nature of the relationship between risk and return
4. Value conventional money market, bond market and equity market instruments
5. Discuss a variety of valuation techniques with understanding of the practical impact of market pricing, apply this knowledge to formulate basic risk management strategies
6. Understand the principles of finance theory and demonstrate the ability to apply them to structured problems.
7. Be able to process and evaluate financial data

Indicative content

Financial Institution overview, capital market structure, investment theory to include efficiency, CAPM, valuation of equities and bonds, application of investment theory to market valuation with brief analysis of cost of capital, brief analysis of dividend theory, simple hedging and risk management.

Teaching and learning activity

This course will be delivered through 2 hour weekly lectures and one hour seminars.

Assessment

Essay - 40% weighting, 40% pass mark, learning outcomes 1-7. Outline Details - An essay that will examine a contemporary issue in finance. Quantitative data analysis will be required. 2000 words.

Exam - 60% weighting, 40% pass mark, learning outcomes 1-6. Outline Details - Students to answer four questions out possible six. All questions carry equal mark weight.

Excel Test - 15% weighting, 40% pass mark, learning outcome 7. Outline Details - An excel test to demonstrate capability of processing financial data efficiently.

Students are not required to pass all components in order to pass the course.