98572 - FINANCIAL MARKETS AND INSTITUTIONS

Learning outcomes

This course aims to increase students’ knowledge of the financial market. During the course, students learn about financial choices regarding saving and investments, the microstructure of the securities industry and the economic equilibria of banks. Lastly, the students will understand financial supervisory goals, instruments and authorities about the financial market.

Course contents

MODULE I: 30 hours

INTRODUCTION (Chapters 1-2)

• Why Study Financial Markets and Institutions?
• Overview of the Financial System

FUNDAMENTALS OF FINANCIAL MARKETS (Chapters 3-4)

• What Do Interest Rates Mean and What Is Their Role in Valuation?
• Why Do Interest Rates Change?
• How Do Risk and Term Structure Affect Interest Rates?
  

FINANCIAL MARKETS (Chapters 11-13)

• The Money Markets
• The Bond Market
• The Stock Market
  

MODULE II: 30 hours

CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY (Chapters 9-10)

• Central Banks
• Conduct of Monetary Policy

THE FINANCIAL INSTITUTIONS INDUSTRY (Chapters 17-23)

• Banking and the Management of Financial Institutions
  
• The Mutual Fund Industry
  
• Investment Banks, Security Brokers and Dealers, and Venture Capital Firms
• Risk Management in Financial Institutions

Readings/Bibliography

F.S. Mishkin, S.G. Eakins, Financial Markets and Institutions, Pearson, 2024, Global Edition, 10th edition.

The teaching material (slides and case studies) can be downloaded by clicking on "Teaching resources on Virtuale" or directly from the "Virtuale" website (https://virtuale.unibo.it).

Other specific references or any additional material will be communicated at the beginning of the course, and made available online within the course's teaching material.

Teaching methods

60 hours of in-class lectures and discussion of case studies.

A trading game based using an online platform where students will be asked to build portfolios and trade on specific securities and financial assets.

Assessment methods

The exam is composed of two written exams which cover each Module I and Module II of the course and aim to evaluate the skills and the critical abilities developed by the students. Each written exam on one Module lasts 2 hours.

The written exams consist of multiple choice, open-answer and problem solving. An example of an exam will be illustrated during the course.

The exam is currently carried out only in person (face to face). The option to carry out the exam online will be available if and only if the University guarantees this option.

Only students who pass the first mid-term assessment are admitted to the second mid-term assessment. To pass the exam, students must obtain a sufficient grade (18/30) for both Module I and Module II.

Apart from the written exam which will account for 75% of the final grade, students will be evaluated based on their performance in the trading game. They will have to create teams with specific trading objectives.

The final mark is computed as the simple average of the two marks obtained for Module I and Module II (for 75% of the total), and for the remaining 25% based on the score achieved in the trading game. It is expressed out of 30 points according to the following graduation:

• <18, fail;
• 18-23, sufficient;
• 24-27, good;
• 28-30, very good;
• 30 with laude, excellent.

The use of supporting material such as textbooks, personal notes or electronic devices is not allowed during the writen exams. Registration for the exam is compulsory, and students have to register through AlmaEsami website (https://almaesami.unibo.it) according to the general rules of the School of Economics and Management.

Teaching tools

Teaching material (slides and discussion of case studies).

The slides can be downloaded by clicking on "Teaching resources on Virtuale" or directly from the "Virtuale" website (https://virtuale.unibo.it).

Office hours

See the website of Andi Duqi