The module studies financial instruments and the markets on which they are traded.
The past three decades have witnessed unprecedented growth in financial and capital markets, especially with the emergence of new financial instruments. The objective of this module is to give an overview of these developments by introducing the basic elements in modern finance and providing an understanding of the organisation of financial markets and the role they play in the economy.
The module starts with an overview of the activities of financial institutions. It then describes financial intermediation and the problem of bank runs, and looks at ways in which these may be limited through government intervention. This is followed by a detailed study of the main financial markets: the money market, bond market, equity market and various derivatives markets. In relation to each market the module discusses institutional details such as market making and trading on centralised exchanges, valuation, empirical findings and recent experience, especially in the context of the 2007-08 financial crisis. The module concludes with an analysis of the theory and practice of financial regulation, and discusses recent regulatory reforms.
The module provides students with the following employability skills. Academic skills are enhanced through essay-writing, mathematical problem-solving and the use of ICT equipment. Students are encouraged to carry out research and information gathering for term papers and as background reading. External awareness is promoted through discussion of real world issues and learning about financial institutions and regulation. Opportunities to develop professional working skills, including teamwork and presentation skills, are provided through class discussions.
The past three decades have witnessed unprecedented growth in financial and capital markets, especially with the emergence of new financial instruments. The objective of this module is to give an overview of these developments by introducing the basic elements in modern finance and providing an understanding of the organisation of financial markets and the role they play in the economy.
The module starts with an overview of the activities of financial institutions. It then describes financial intermediation and the problem of bank runs, and looks at ways in which these may be limited through government intervention. This is followed by a detailed study of the main financial markets: the money market, bond market, equity market and various derivatives markets. In relation to each market the module discusses institutional details such as market making and trading on centralised exchanges, valuation, empirical findings and recent experience, especially in the context of the 2007-08 financial crisis. The module concludes with an analysis of the theory and practice of financial regulation, and discusses recent regulatory reforms.
The module provides students with the following employability skills. Academic skills are enhanced through essay-writing, mathematical problem-solving and the use of ICT equipment. Students are encouraged to carry out research and information gathering for term papers and as background reading. External awareness is promoted through discussion of real world issues and learning about financial institutions and regulation. Opportunities to develop professional working skills, including teamwork and presentation skills, are provided through class discussions.
- Module Supervisor: Sheri Markose