CALIFORNIA STATE UNIVERSITY, CHANNEL ISLANDS
SYLLABUS
FIN410- Financial Markets and Institutions
(Class Number 1063)
Term: Spring 2010 Instructor: Priscilla Liang (Swartz)
Class room: Bell Tower 1684 Office: Sage Hall 2143
Class Schedule: 9-11:50 am Wed Phone: 437-8926
Office Hours: 1 - 3 pm Tu E-mail:
1 - 2 pm Wed
Or by appointment
Course Description
FIN410 gives a broad knowledge of operations, mechanics, and structure of the U.S financial system. It provides an in-depth discussion of key topics critical to financial market and institutions with an emphasis on the structure and turmoil of the current credit crisis. The course will focus on the central banks, key financial markets and institutions, financial instruments, and international dimension of the financial markets.
Student Outcomes and Expected Competencies
Upon successful completion of the course, students will be able to:
1) To understand the flow of funds in the economy and their influence on credit conditions, lending, investment and liquidity policies.
2) To understand the role of the Federal Reserve System and monetary policy on interest rates.
3) To understand the rationale behind the existence of intermediaries in financial markets.
4) To learn about all major financial markets (i.e. equities, public and corporate debt, foreign exchange, derivatives, etc.) and their respective financial instruments, institutions, and regulations.
5) To learn about alternative regulatory and structural frameworks.
Text and Other Material
1) Financial Markets and Institutions, 9th edition, byJeff Madura. Thompson/South-Western Publishing, 2010 (Required)
2) Access to Blackboard: Class materials including power point presentations, additional reading assignments, cases, quizzes, final project, instructions for cases and projects etc., are posted on Blackboard http://csuci.blackboard.com/.
3) It is also recommended that you keep yourselves informed about current business news and financial issues by reading one or more of the following:
The Wall Street Journal
Business Week
Financial Times
The Los Angeles Times
The New York Times
You can find the latest issues of the above at the university library, or by entering the course blackboard page and click on “external links”
Assignments
Quizzes: Ten quizzes will be given during the course. To perform well on quizzes, students should read assigned chapters and papers before classes and review them after.
Case Analyses: Students will analyze and present cases related to the topics covered in classes. There are four case analyses during the semester. Each student will have an opportunity to present once during the course. The presenting student(s) of the week will also turn in power point presentations of the case.
Course Project: Course project is considered as the comprehensive final exam of this course. The project shall be conducted on individual basis. Detailed instructions of the project (and cases) analyses are posted on Blackboard.
Examination
The exam will be based on assigned readings, lectures, quizzes, and homework problems. No Make-up Examination will be given. If you miss the exam, you have a choice to take a closed-book cumulative make-up exam during the final examination week.
Course Requirements
1) Please be prepared for each class. Read textbook chapters/papers before the lecture, and review them and work on cases after. In preparation for the first class, student should read the first chapter in Madura’s Financial Markets and Institutions text.
2) Punctual attendance is expected from students at all class meetings. If you have to miss a class, please discuss this with me ahead of time.
3) Active learning is a key to success. Classroom participation is required and will be documented throughout the course.
4) Computer analytical skills are necessary. Students should know how to use Microsoft Excel for analyses and calculations. I will help you on individual basis if you don’t. Please let me know in the beginning of the semester.
Grading
1) Grades are determined in the following format:
Quizzes………………………………...10 percent (1% each)
Case Reports and Presentation ...... 25 percent (5% each report, 5% presentation)
Midterm Exam………………………....25 percent
Final Exam……………………………..30 percent
Class Participation………………….…. 10 percent
2) Grade Scale (%):
94-100=A 87-89=B+ 77-79=C+ 65-69=D 0-64=F
90-93=A- 84-86=B 74-76=C
80-83=B- 70-73=C-
Policies
1. Add/drop, withdraw, and incomplete policy: Students should comply with the college policy for add/drop, withdraw, and incomplete procedure.
2. No late work will be accepted. This policy applies to homework assignments, case analyses, all exams and quizzes.
3. Statement of Academic Integrity: Violation of academic integrity include, but are not limited to, the following: cheating on an examination or quiz; plagiarism on any paper or report; falsifying data, research or report; representation of forged documents; misrepresentation of information in oral or written form. Such violations will automatically result a Failed grade for the course.
4. Disabilities statements: Cal State Channel Islands is committed to equal educational opportunities for qualified students with disabilities in compliance with Section 504 of the Federal Rehabilitation Act of 1973 and the Americans with Disabilities Act (ADA) of 1990. The mission of Disability Accommodation Services is to assist students with disabilities to realize their academic and personal potential. Students with physical, learning, or other disabilities are encouraged to contact the Disability Accommodation Services office at (805) 437-8510 for personal assistance and accommodations.
Tentative Course Schedule
Week
/Topics and Chapters
1
/Course Administration
Course OverviewChapter 1: Role of Financial Markets and Institutions.
2
/ Chapter 2: Determination of Interest Rates.Chapter 3*: Structure of Interest Rates.
3
/ Chapter 4: Functions of the Fed.Chapter 5*: Monetary Theory and Policy.
4
/ Chapter 6*: Money Markets.Case 1 Report and Presentation
5
/Chapter 7*: Bond Markets.
Chapter 8: Bond Valuation and Risk.6
/Chapter 9*: Mortgage Markets
Chapter 10: Stock Offerings and Investor Monitoring.
7
/Chapter 11*: Stock Valuation and Risk.
Chapter 12: Market Microstructure and Strategies8
/ Chapter 13*: Financial Futures MarketsReview for Midterm Exam
Case 2 Report and Presentation9
/ Chapter 14*: Options MarketsMidterm Exam
/ Spring Break 3/22-3/27
10
/ César Chávez Day. Campus closed11
/ Chapter 15*: Swap MarketsChapter 16: Foreign Exchange Derivative Markets
12
/Chapter 17: Commercial Bank Operations
Chapter 18: Bank RegulationChapter 19: Bank Management
Chapter 20: Bank Performance
Case 3 Report and Presentation13
/ Chapter 21*: Thrift OperationsChapter 22*: Consumer Finance Operations
14
/ Chapter 23*: Mutual Fund Operations.Chapter 24*: Securities Operations.
15
/ Chapter 25*: Insurance and Pension Fund Operations.Case 4 Report and Presentation
16
/ Final Project dueNote: Information contained in this syllabus, other than that mandated by the University, may be subject to change with advance notice, as deemed appropriate by the instructor. Assignments and their timing listed under the tentative course schedule may be adjusted during the semester depending on the pace and needs of the class.
2