Year
2021
Units
4.5
Contact
1 x 2-hour lecture weekly
1 x 1-hour tutorial weekly
Enrolment not permitted
BUSN2008 has been successfully completed
Topic description

The topic provides students with an introduction to financial markets including debt (bond) markets, equity (share) markets, foreign exchange markets and derivatives markets. On completing the topic, students should be able to explain the role that markets play in the economy, the role of participants in the various markets and the use of the financial instruments for financing and risk management purposes.

Educational aims

This topic aims to explain:

  • The role that markets play in the economy
  • How people buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other items of value at low transaction costs and at prices that reflect the global market
Expected learning outcomes
On completion of this topic you will be expected to be able to:

  1. Describe the main features of financial markets
  2. Explain the role that financial intermediaries play in financial markets; including the role played by banks and non-bank financial institutions
  3. Distinguish between debt and equity financing
  4. Describe the different financing instruments that are available for both private sector and government sector financing requirements, and develop an appreciation of the appropriate forms of financing for different purposes
  5. Discuss the various forms of equity finance and the regulatory controls on equity capital markets
  6. Explain the different approaches to forecasting share price movements
  7. Describe the functions and operations of foreign exchange markets and perform calculations with respect to exchange rates
  8. Explain the role of derivative securities in risk management
  9. Describe ethical principles and the laws and codes of ethics applicable to financial markets

Key dates and timetable

(1), (2)

Each class is numbered in brackets.
Where more than one class is offered, students normally attend only one.

Classes are held weekly unless otherwise indicated.

FULL

If you are enrolled for this topic, but all classes for one of the activities (eg tutorials) are full,
contact your College Office for assistance. Full classes frequently occur near the start of semester.

Students may still enrol in topics with full classes as more places will be made available as needed.

If this padlock appears next to an activity name (eg Lecture), then class registration is closed for this activity.

Class registration normally closes at the end of week 2 of each semester.

Classes in a stream are grouped so that the same students attend all classes in that stream.
Registration in the stream will result in registration in all classes.
  Unless otherwise advised, classes are not held during semester breaks or on public holidays.