FINANCIAL MARKETS AND INSTITUTIONS

1st Semester (6 credits)

Department of Finance and Operations Management

Finance and Accounting Degree

Faculty of Tourism and Finance

SYLLABUS
(Fall 2010)

Instructors:
Antonio de la Torre Gallegos Martha Edith Bellini Juan Ignacio Contreras Mora Filipo di Pietro

FINANCIAL MARKETS AND INSTITUTIONS

General Course Information Course: Financial Markets and Institutions Credit hours: 1 semester. 6 credits

Objectives and description of the course The objective of the course is to prepare students for todays dynamic financial environment and to provide a comprehensive understanding about financial markets, their players and instruments. Initially, the focus will be on the description of the nature and economic functions of the several types of financial institutions that are present in the market. The second part of the course will then be used to cover specific aspects of the equity and debt markets in more detail. Emphasis will be put on their players and instruments, in order to provide a more detailed knowledge about risk/return characteristics and price determination. It is expected that students will develop critical skills in assessing the relevance of the principles of finance and financial intermediation to real-world situations, and to better understand the role that financial markets play in the business environment that they will face in the future.

Teaching Strategies and Recommended Materials Several teaching strategies will be employed in the course, including lectures, class discussions, problem-solving demonstrations, as well as presentation and discussion of material drawn from the financial press. Students are expected to take an active role in class discussion and problem-solving sessions. The fundamental material for the course will be the class lectures (students' notes), the PowerPoint slides or transparencies used by the instructor, and the basic bibliography. For each lecture, the instructor will recommend the most appropriate textbook. Several web pages are available to extend knowledge and information about each topic.

Material available on the web The WEB CT course page will lead you to the many resources available on the web. Items that may help in preparing for the class include readings, set problems, and slide presentations (PPT). The material relating to lectures is not intended to be a substitute for class attendance.
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FINANCIAL MARKETS AND INSTITUTIONS

Attendance Students are advised to attend all classes. A record of attendance will be kept.

Assignments Homework exercises and questions are provided to help students master the material and to prepare them for exams. The assignments will also give the students the opportunity to exercise and enhance their written and oral communication skills through their class presentations. Quizzes Occasional quizzes may be given to allow the instructor to gauge the progress of the class.

Exams and Grading There will be four partial exams and a final exam. The exams will have a theoretical part and a problem-solving part. Evaluation criteria will consider class attendance, evaluation of assignments and marks in partial exams. Positive evaluation of all criteria (more than 5 out of 10 points) will allow the student to forgo the final exam. Topics CHAPTER 1: Introduction to Financial systems and Financial Markets CHAPTER 2: The structure of the Spanish Financial System and financial flows of the Spanish economy. CHAPTER 3: Credit institutions, an overview: Banks and Savings Banks. CHAPTER 4: Bank of Spain. Functions and Monetary Policy in the European context. CHAPTER 5: Fixed Income Market I. CHAPTER 6: Fixed Income Market II. CHAPTER 7: The Stock Market. CHAPTER 8: Collective investment.

FINANCIAL MARKETS AND INSTITUTIONS

Bibliography

BREALEY MYERS MARCUS Fundamentals of Corporate Finance McGraw-Hill, Inc. FABUZZI, FRANK J. & MODIGLIANI, FRANCO Capital Markets: institutions and instruments Prentice Hall. New Jersey FABOZZI, MODIGLIANI, JONES & FERRI Foundations of Financial Markets and Institutions, 3rd edition by Prentice Hall, NJ. www.bde.es www.cnmv.es www.bolsamadrid.es www.tesoro.es