Unit name | Financial Markets, Institutions and Instruments |
---|---|
Unit code | EFIM10029 |
Credit points | 20 |
Level of study | C/4 |
Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
Unit director | Dr. Pratobevera |
Open unit status | Not open |
Pre-requisites |
None |
Co-requisites |
None |
School/department | School of Accounting and Finance - Business School |
Faculty | Faculty of Social Sciences and Law |
The unit provides an introduction to institutional and applied aspects of finance, it’s historical evolution, and the link between the financial sector and the “real” economy.
This unit consists of three components: 1) Financial institutions, markets and participants; 2) Financial history; and 3) Finance and growth. As a foundation to all subsequent units in the programme, the first component will explain the role of the financial sector, describe the participants in financial markets and explain their interaction with financial institutions. Then the unit will turn to financial history to provide a context and an understanding of how financial institutions have evolved. The third section of the unit will describe and explain the role of finance, financial markets and institutions in growth and economic development.
1. The institutions of Finance: Market vs bank-based systems. Banks and other financial intermediaries; Financial exchanges and their regulation; Informational asymmetries and how different financial systems cope with them; Internal vs external sources of finance; and costs to going public; bond and equity markets; How trading is conducted; Derivative assets; Venture capital and private equity; Collective investment vehicles; Introduction to Corporate Governance and Ethics.
2. Financial history: The historical development of lending and its regulation; Types of financial innovation. Securitization; Bubbles and financial crises; The Financial Crisis of 2007-08. The “New Normal” since: QE, low growth.
3. Finance and growth: The role of the financial system in growth and economic development.
Students will be able to:
1. Demonstrate knowledge and understanding of financial history
2. Understand the role of financial systems in growth and development
3. Understand the dual nature of finance as a business discipline and a social science
4. Communicate ideas relating to 1., 2., and 3., in writing.
Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities
50% - two individual assignments (25% each)
40% - final group essay
10% - class participation
Textbooks: Selected chapters from:
Books and articles