Program Credit Hours Duration Prerequisites Resource Person Class Timings E-mail Address

EMBA 3

MONEY & CAPITAL MARKETS (FIN-6043)

15 Weeks/30 sessions Financial Management Muhammad Usman Yusuf Monday 6:30-9:30 u.yusuf@ucp.edu.pk

Course Introduction
The course is designed to equip students with the comparative knowledge of a financial system and its regulatory framework in Pakistan and in a developed

economy. On completion of the course, the students should be able to demonstrate an understanding of the subject matter and financial environments in Pakistan. This course offers a comprehensive exploration of the revolutionary developments occurring in the world's financial markets and institutions i.e., innovation, globalization, and deregulationwith a focus on the actual practices of financial institutions, investors, and financial instruments.

Learning Objectives
To understand the functions performed and the roles played by the system of financial markets and financial institutions in the global economy and in our daily lives To learn about the channels through which funds flow between lenders and borrowers within the global system of money and capital markets. To learn how market participants keep track of the prices of financial assets. To learn about recent trends in the financial system and how they may affect us in the future. To understand the many roles and functions performed by the money market. To identify the key money & capital market players. To examine the roles that governments and security dealers play in the functioning of the money & capital markets

Pedagogy
The course employs cases and problems as well as classroom lectures and discussions to offer a hands-on learning experience. We will make use of international as well as domestic examples. Regularity and Punctuality: Regarding punctuality, you will be marked present only if you arrive in the class within five minutes of the scheduled time. Absence during the presentation sessions will result in deduction of 1 point each from the class participation marks. This means that the class participation marks can go into the negative as well. If your group is making a presentation and you are not there, you get zero. If you miss a Quiz you get zero in that Quiz. Book Readings:

You are supposed to have read the text chapters under discussion in advance. Questions answered, relating to these text chapters, will contribute to the class participation marks. Class Participation: Positive, healthy and constructive class participation will be monitored for each class. Particular emphasis will be given during the presentation and case study sessions. The manner in which the question is asked or answered will also be noted. Your behaviour, as business executives in the class will contribute to the class participation marks. Advisory Service: During the semester, you are free to discuss the progress of your course any time you want. However to avoid inconvenience setting up of appointment is recommended.

Assessmen ts
All of the activities held during the session will be evaluated. The final grades for the course will be as follows: Quizzes Assignment Class Participation Mid-Term Final exam Total 10% 15% 5% 30% 40% 100%

Quizzes: Quizzes will be taken according to calendar of activities. The quizzes are aimed at evaluating the participants understanding and clarity of different concepts. Some corrective action will be taken if necessary, to fill the gap between desired and actual. Surprise quizzes may also be taken. Quizzes may be either subjective or objective.

Assignments: Assignments are evaluated on the basis of the material, expression, graphical representation (if required), and list of references. Plagiarism is not allowed. Late submission of assignments will not be accepted in any case. Assignments

will be returned after grading the next week. At the end of the course, the participants are required to submit a project. The purpose of the project is to enable the participants fully apply the knowledge acquired during the course. It will come up with more clear understanding of what is going on in practical life.

RECOMMENDED TEXT BOOK: 1. Money & Capital Markets by Peter S. Rose 9th Edition 2. FOUNDATION OF FINANCIAL MARKETS & INSTITUTIONS-3E, FRANK J. FABOZZI , FRANCO MODIGLIANI, REFERENCE BOOKS: Bond Markets, Analysis and Strategies by Frank J. Fabozzi (6e) 2. Financial Markets & Institutions-5e, Mishkin, Eakins
1.

CALENDAR

OF

ACTIVITIES

Session
2 3 4,5 6 7 8 9 10

Discussion Topics
Functions and Roles of the Financial System in the Global Economy Financial Assets, Money, Financial Transactions, and Financial Institutions The Financial Information Marketplace The Future of the Financial System and the Money and Capital Markets The Determinants of Interest Rates: Competing Ideas Inflation & Deflation, Yield Curves, and Duration: Impact on Interest Rates and Asset Prices MID TERM Inflation & Deflation, Yield Curves, and Duration: Impact on Interest Rates and Asset Prices Introduction to the Money Market and the Roles Played by Governments and Security Dealers Commercial Banks, Major Corporations, and Federal Credit Agencies in the Money Market Roles and Services of The Federal Reserve & Other Central Banks Around The World Common Stock Markets

Suggested Reading
Rose Ch. 1 ROSE CH. 2 Assignment #1 ROSE CH. 3 Quiz # 1 ROSE CH. 4 ROSE CH. 5 Quiz # 2 ROSE CH. 7 Assignment #2

ROSE CH. 7 ROSE CH. 10 Assignment #3 ROSE CH. 11 Quiz # 3

11 12

ROSE CH. 12 Readings from Fabozzi Assignment #4 Readings from Fabozzi Quiz # 4

13

14,15

Markets for Corporate Senior Instruments END TERM