Financial Markets and Institutions
BA53A
Spring 2004
Instructor: Tom Smythe
Office: 201C Hipp Hall
Office Hours: M-Th 9:00-10:00 Or By Appointment.
Phone: 294-3312 (O); 610-9744 (H) - Before 8:30 P.M.
e-mail:
Location: Hipp Hall 209
Meeting Times: M-F 10:00-10:50 (or thereabouts)
Intranet: See course posted on Blackboard.
Textbook: Financial Markets and Institutions, Sixth Edition, Jeff Madura, (South-Western College Publishing, 2003).
Other Materials: Financial calculator and subscription to the Wall Street Journal.
Course Objective: The primary goal is to provide the student with a broad understanding of financial markets, the institutions that operate in these markets, and the role of the Federal Reserve in the U.S. economy. We will discuss a wide variety of financial intermediaries, some in more detail than others. A secondary but equally important goal is to encourage students to think critically about economic information they encounter daily and to relate each topic to everyday experience.
Attendance: The official attendance policy is as stated in the 2003-2004 catalogue on p. 46-47. A formal "roll" will not be taken. It is in your best interest to attend each class. If you know you will miss class, make arrangements to get class notes from one of your peers. More importantly, let me know in advance, if possible, if you will miss class. Approach this class as if I am your boss. If you have an emergency, get in contact with me as soon as possible. Lectures will not always follow the material in the book and tests will come predominantly from lectures.
Honor Code: Homework can be done together, but I encourage you to try on your own first. For all other assignments and tests, independent work is expected. See the Academic Integrity Policy 121.5 for specifics. If I catch you cheating, my punishment is an ‘F’ in the course – it’s not worth it!
Grades: A (93-100), A- (90-92), B+ (87-89), B (83-86), B- (80-82), C+ (77-79), C (73-76), C- (70-72),
D+ (67-69), D (63-66), D- (60-62), F (0-59).
Assignments: There will be four tests worth the following amounts: Test 1 - 21%; Test 2 – 21%; Test 3 – 21%; and Test 4 – 32%. The tests will be at night. The final test will be Monday May 31 from 9:00-11:30. There will be no make-up exams without an approved excuse provided within 24 hours of the test or as soon as possible to attain. The remaining 5% of your grade will be based on your performance during Friday Forums. Keeping up with reading and homework will be essential. Do not get behind.
Friday Forums: 5% of your grade will be based on your discussion during forums to be held most Friday’s in the term. The forums will be related to current issues in financial markets and institutions and will last for no more than 15 minutes. To get a 100 on this portion of your grade, you need to accumulate the full 5 points. “Winning the points” will be based on your contribution to the discussion and at my discretion. The biggest component of awarding the points will be based on the relevance of your comments. You can never earn more than 1.5 points on any given Friday. I will bring in at least two articles/topics of interest for us to discuss.
Tentative Schedule – Very Much Subject To Change
Week Chapters Subject Area
3/8 Introduction
Chapter 8 Bond Valuation
3/15 Chapter 2 Determination of IR’s
Chapter 3 Structure of IR’s
3/22 Chapter 3 Structure of IR’s
Chapter 6 Fixed Income Markets
3/29 Chapter 6, 7 Fixed Income Markets
Test 1 (8, 2, 3, and 6)
4/5 Chapter 10 Stock Markets
Mishkin Theory of Financial Structure
NO CLASS 4/9
4/12 NO CLASS 4/12
Mishkin Theory of Financial Structure
Chapter 17 Banks
4/19 Chapter 17, 19 Banks
4/26 Chapter 19 Banks
Chapter 4 The Federal Reserve
Test 2 (7, 10, Mishkin, 17, 19)
5/3 Chapter 4 The Federal Reserve
Chapter 23, 24 Non-Depository Financial Institutions
5/10 Chapter 24, 25, 26 Non-Depository Financial Institutions
5/17 Chapter 26 Non-Depository Financial Institutions
Test 3 (4, 23, 24, 25)
5/24 Chapter 27 Non-Depository Financial Institutions
5/31 Final (26-27+) 9:00-11:30 A.M.
ATTENTION: If you are a student with a disability and think that you might need special assistance or a special accommodation in this class or any other class, call the Disabilities Services Coordinator, Susan Clark at 294-2322.