0 оценок0% нашли этот документ полезным (0 голосов)
29 просмотров39 страниц
FIn 353 is a letter graded course. Please don't change to pass or no-pass grade course. There are two mid-term exams, which are in the form of multiple choice questions. The final exam is cumulative, based on the lectures, midterm exams and homework.
FIn 353 is a letter graded course. Please don't change to pass or no-pass grade course. There are two mid-term exams, which are in the form of multiple choice questions. The final exam is cumulative, based on the lectures, midterm exams and homework.
FIn 353 is a letter graded course. Please don't change to pass or no-pass grade course. There are two mid-term exams, which are in the form of multiple choice questions. The final exam is cumulative, based on the lectures, midterm exams and homework.
Institutions Administrative Issues and Course Overview
Todays plan administrative issues syllabus prerequisite add, drop and withdraw Two mid-term exams Final In-class exercises final grade Introduction to financial markets and institutions
The instructor My name is George Li Office: BUS 315 Email: li123456@sfsu.edu Office hours: Tuesday: 4:00 to 6:00 Wednesday: 11:30 to 1:30 Research interest: Corporate finance: real options, technological innovations, and valuations Asset pricing: information and stock prices
Textbook Financial Markets and Institutions, by Saunders and Cornett (5th edition) Sorry for the cost
Prerequisite You are required to take FIN 350 with a grade of at least C-. It is the schools policy that all the students in this course must satisfy this requirement and there is no exception Add, drop and withdrawal policy The business school has the policy for add, drop and withdrawal In the first four weeks, you have to get enrolled in the class, if you want. Students can withdraw once Please read the bulletin for detail information Pass or no pass grade Fin 353 is a letter graded course. Please dont change to pass or no-pass grade course; otherwise you will get a no-pass grade. Homework To help you understand the concepts taught in class, and prepare for the mid-term exams and the final exam, there is a weekly homework set, which is not graded, but its solution will be posted in my ilearn. The best way to learn is to do a lot of problems. Mid-term exams There are two mid-term exams, which are in the form of multiple choice questions and take about 90 -120 minutes each. There are no makeup or in-advance mid-term exams The higher-score mid-term exam will have a weight of 0.8 and the lower one will have a weight of 0.2. Each mid- term exam will have 40 questions. You are supposed to allocate your time to take all the mid-term exams.
The final exam The final exam will be in class (closed book), with a form of multiple choice questions. There are no makeup or in-advance exams. The final exam is cumulative, based on the lectures, mid-term exams and homework. The final exam will be at the same classroom and start at the same time. The final exam takes 150 minutes. In-class works There will be three in-class works. Each is worth 10 points. The in-class work can be taken anytime during a lecture. These three in-class works are used to make sure that you come to each lecture. The in-class work is to ask to write some solutions to problems in a sheet of paper and have your name written on it. You have to submit the in-class- work yourself. FIn 351: Lecture 1 Class-performance 10 points have been assigned for class performance. If you dont disturb the class , you will get a full credit for class performance. The typical example for disturbing the class is that you keep talking or talking to other students during the lecture so that other students cannot listen to the instructor clearly. The other example is that you come to lectures late very often or leave the classroom when the instructor is lecturing. The class performance score will be given at the instructors discretion.
FIn 351: Lecture 1 Final grade Your overall course grade will be based on your class attendance in the class, the mid- term exams, and the final exam.
Class attendance: 10 pts In-class works 30 pts Two mid-term exams: 30 pts Final exam: 50 pts Total 120 pts Grading policy Your grades are based on the distribution of the scores of the class. Specifically, your final grade is based on the following table. Ranking Grade 0%-10% A range 10%-50% B range 50%-85% C range 85%-95% D range 95%-100% F Motivation for taking Fin 353? Why are you taking Fin 353? My approach of teaching Fin 353 Focus on several fundamental, important concepts, Applications and economic intuitions Avoid too many materials Help understand finance better. Why study Financial Markets and Institutions? Markets and institutions have many important functions to perform. They help people to increase income, reduce risk exposure, and provide all kinds of economic opportunities. Financial markets A financial market Securities are issued and traded The classification of the financial market By seasoning of claim Primary market Secondary market By nature of market Debt market Equity market Financial markets (continue) By maturity of claim Money market Capital market
Primary versus Secondary Markets Primary markets markets in which users of funds (e.g., corporations and governments) raise funds by issuing financial instruments (e.g., stocks and bonds) Secondary markets markets where financial instruments are traded among investors (e.g., NYSE and Nasdaq) Primary versus Secondary Markets Primary and Secondary Markets Do secondary markets add value to society or are they simply a legalized form of gambling? How does the existence of secondary markets affect primary markets? Money and Capital Markets Money markets markets that trade debt securities with maturities of one year or less (e.g., CDs and U.S. Treasury bills) little or no risk of capital loss, but low return Capital markets markets that trade debt (bonds) and equity (stock) instruments with maturities of more than one year substantial risk of capital loss, but higher promised return Debt and stock Markets Debt markets markets in which users of funds such as corporations and governments raise funds by borrowing money from fund owners or investors. Stock markets markets in which users of funds (corporations) raise funds by selling ownership of the firm.
Foreign Exchange (FX) Markets FX markets trading one currency for another (e.g., dollar for yen) Spot FX the immediate exchange of currencies at current exchange rates Forward FX the exchange of currencies in the future on a specific date and at a pre-specified exchange rate Derivative Security Markets Derivative security a financial security whose payoff is linked to (i.e., derived from) another security or commodity, generally an agreement to exchange a standard quantity of assets at a set price on a specific date in the future. Derivative Security Markets Selected examples of derivative securities Many options, futures contracts Forward contracts Forward rate agreements Swaps Securitized loans The functions of financial markets 1. Conducting exchange 2. Providing liquidity 3. Pooling money to fund large corporations 4. (reduce cost) 5. Transferring money across time and distance 6. Risk management (hedge, diversify) 7. Providing information 8. Providing efficient allocation of money
Conducting exchange What does it mean ? Examples Providing liquidity What does this mean? Examples
Pooling money to fund large corporation investments What does this mean? Examples Transferring money across time and distance What does this mean? Examples Risk management What does this mean? Examples
Providing information What does this mean? Examples
Providing efficient allocation of money What does this mean? Examples
Financial Market Regulation The Securities Act of 1933 full and fair disclosure and securities registration The Securities Exchange Act of 1934 Securities and Exchange Commission (SEC) is the main regulator of securities markets Financial institutions Financial Institutions institutions through which suppliers channel money to users of funds. Examples of financial institutions Commercial banks Thrifts Savings associations, saving banks, credit unions Insurance companies Securities firms and investment banks Mutual funds Financing companies Asset Size and Number of Selected U.S. Financial Institutions 2010 INSTITUTION TOTAL ASSETS (BILL $) NUMBER OF FEDERALLY INSURED INSTITUTIONS Commercial Banks $12,130 6,622 Savings Associations $ 1,253 1,138 Credit Unions $ 885 7,554 Insurance Companies $ 6,459 Private Pension Funds $ 5,661 Finance Companies $ 1,613 Mutual Funds $ 7,376 Money Market Mutual Funds $ 2,746 Data from September 2010, data sources include Federal Reserve Board, Flow of Funds Accounts, Levels Tables, FDIC Stats at a Glance and the NCUA website. The mutual funds category excludes money market funds. Financial Institutions Depository institutions: commercial banks, savings associations, savings banks, credit unions Non-depository institutions Contractual: insurance companies, pension funds, Non-contractual: securities firms and investment banks, mutual funds.