FEB23005: The Practice of Financial Markets

This course presents a concise overview of financial markets. This includes coverage of a wide array of financial assets, the risks associated with their use, various trading mechanisms employed by exchanges and different forms of organization that govern the interaction among market participants. This will provide students with a solid foundation for understanding the continually evolving financial system, its institutions, its markets, and its products.

We start with an overview of the financial system and talk about the functions of financial markets and institutions. We describe the financial institutions industry and pay special attention to the mutual fund industry. We cover the basic features of (1) the money markets (2) the mortgage market (3) the bond market (4) the stock market (5) the foreign exchange market and (6) cryptocurrencies. We touch upon valuation of different financial assets, risk assessment, behavior of the financial asset users and implications of the financial market on the economy as a whole.

FEM11173: Advanced Corporate Finance: Corporate Governance

Corporate governance deals with the question of how a firm should be set up in order to ensure that investors get a return on their investment. A firm (or a country) with poor corporate governance will find it difficult to obtain necessary investments and therefore has a severe competitive disadvantage.

This seminar provides you with an opportunity to gain a deeper understanding about what good corporate governance is and why it matters. The course covers some theoretical and legal issues, but its main focus is on empirical research and insights. Therefore, we will analyze, discuss and criticize the methodology used in empirical research. Hence, this course also aims at building a critical view on any empirical results presented to students. In (group) assignments, you will apply the knowledge and skills you acquire during the seminar to different types of tasks, including hands-on data work.

Active participation in and a strong commitment to this course are vital. You are expected to present pieces of the literature and to prepare for in-class discussions. You will also present your own results, ask questions, mention doubts and express your ideas in the class discussion.

Source: Roberts and Whited (2013)