Course overview
This course introduces students to the operations and functions of the financial markets and financial institutions. The emphasis is on how markets work, how instruments are priced, how they are traded and why they are used. Time value of money: principles of compounding and discounting. Financial markets: functions and operations of the financial markets for debt and equity securities. Financial instruments: properties, uses and valuation of typical financial instruments: equities; bonds; bills and discount-type instruments. Financial institutions: operations and role of banks and managed/superannuation funds: bank regulations. Risk and financial instruments: identifying and describing risks.
Course learning outcomes
- Identify and describe the characteristics of key financial instruments
- Describe the functions, operations and roles of the financial markets, financial institutions and key participants.
- Explain the concepts of risk and return and their measurement.
- Price financial instruments using simple valuation models
- Display a comprehension of basic theories of interest rate determination, and the term structure of interest rates
- Demonstrate Business Enterprise Skills in the context of the Finance discipline: i) Problem Solving (foundation level); and ii) Written Communication (foundation level).
Degree list
The following degrees include this course