Fin 230 Financial Markets & Institutions

Required Text:

• Anthony Saunders,Marcia Million Cornett Financial Markets and Institutions, 5th Edition, McGraw Hill, 2012, ISBN: 978-007-108674-5.

 
Suggested Materials:

• Mishkin, F.S and Eakings, S.G. Financial Markets and Institutions 6th Edition, Pearson International Edition, 2009.
• Financial magazines and financial pages of newspapers

 
Course Description
This course explains and analyzes how financial markets and institutions work and interact with each other. The aim of the course is to give a general idea about the financial markets, where funds change hands. The investors, who have funds, and the borrowers, who need funds, meet at the financial markets. Sometimes it is not easy for the lender and borrower to find each other so they need an intermediary institution to finalize their transaction. These intermediaries in the financial markets are called financial institutions and they are very important for the financial system to work efficiently. The first part of this course is the overview of financial markets. Later, the role of the Central Bank in the financial system and economy will be discussed by using Federal Reserve as an example. The second part of the course is the analysis of specific financial markets and institutions.
 
Learning Outcomes
Students who complete this course should be able to:

• Understand general structure of financial markets with institutions and instruments in order to differentiate their roles in the economy.
• Understand the importance of financial intermediation for economic agents.
• Understand the responsibilities, policies and tools of The Federal Reserve System and Central Banks in order to see the importance of central banks in a modern economy.
• Understand how the foreign exchange market, stock market, commercial banking, securities firms and investment banks and mortgage market work in order to comprehend these markets.
• Understand the importance of the regulations in financial markets in order to see effects of regulations on financial markets.

 
Course outline

Chapters No.	Topics
Chapter 01	Introduction and Overview of Financial Markets
Chapter 04	The Federal Reserve System, Monetary Policy and Interest Rates
Chapter 08	Stock Markets
First Midterm Exam: Includes: Ch.1, Ch.4, Ch.8
Chapter 09	Foreign Exchange Markets
Chapter 07	Mortgage Market
Chapter 11	Commercial Banking: Industry Overview
Second Midterm Exam: Includes: Ch.9, Ch.7, Ch.11
Chapter 16	Securities Firms and Investment Banks
Chapter 13	Regulation of Commercial Banks
FINAL EXAM Required Topics: All of the above

 
Calculators: (In case of need)

• Financial calculators are allowed during lectures and exams. However, devices with word processing capabilities (laptop computers, palmtops, etc.) are not allowed during tests.
• Handing over the calculators is strictly prohibited. Cell phones are not allowed to use for calculation during the exams.

 
Grading distribution:
Your final grade will be based on your performance on two midterm exams, one final exam and class attendance & participation.
 
1st Mid Term Exam                                                         25%
2nd Mid Term Exam                                                       25%
Class Attendance & Participation                              10%
Final Exam                                                                        40% (cumulative, all the chapter)
Total                                                                                 100%
 
Exams

• Examinations will be a combination of multiple choice questions, short essays, explain essays, true/false and problems.
• For all tests, you need to choose the best answer if questions are multiple choices questions. You also need to show your steps and all the details if questions are essays or problems.

 
Exam Policy/Requirements:

• If you miss an exam, you will get zero. There will be No Make-up exams in summer semester.
• During the exams;  talking, whispering, using cell phones for calculation or for any reason (your cell phones must be turned off and kept out of your reach!!!!) is not allowed and strictly forbidden.
• Borrowing calculators during exams are also not allowed in any way.
• Showing your paper to another student, not being very careful on this matter or trying to look someone’s paper will be rewarded as the behavior deserves.
• In addition to above rules you know the college general policies (bringing your ID, obeying the university rules etc.) about exams which also apply.
•  During the quizzes and exams, you are responsible for bringing all your required materials (pen, pencil, calculator, student ID etc.) to the classroom.

 
Attendance:

• Each student is required to attend the classes and participate to the discussion in the class. Being in the class, without attending any discussion is not enough to get 10 percent of the grade. As a student’s attendence decrease by 10% he will loose 2 marks out of 10 marks.
• It is also compolsory to attend at least 75% of all classes. Any student failing to attend 75% of the classes will not be able to sit on Final exam. The Instructor reserves the right not to accept the availability of a student who is late.

 
Make-ups:

• There will be no makeup exams. If a student misses the midterm exam, he will receive zero for the midterm.

 
Classroom Requirements:

• Please obey the lecture times and be on time in the class. If the door of the classroom is closed then it means the lecture has started.
• If you have an excuse to be late then please inform me before the lecture.
• Please keep your mobile phones switched off during the lecture and exams.

 
 
 
 
Contacting with the lecturer:
Students can contact with the lecturer during the office hours or any time if the lecturer is at his room.  Appointments are also possible.
Students can email the lecturer with special care to the following: Every mail a student sends should include:

• His/her name surname
• Student number
• Course code/name/section
• Clear mentioning of the matter.