Introduction

This course focuses on the role of financial markets and financial institutions in facilitating the flow of funds to finance investments by corporations and governments. This course systematically evaluates each market and describes the participants and types of instruments offered. We examine four key markets: equity markets, debt markets, foreign exchange markets, and derivative markets. We will also examine the role of financial institutions such as commercial banks and mutual funds. This course builds on the foundations provided by FNCE101 Finance but focuses on learning how the principles of finance can be applied in a market setting. This course will also prepare students for other more advanced finance courses. By the end of this course, students will be able to: Explain the role of each financial market and compare the differences between each market ; Describe the linkages between each market ; Describe the instruments in each market and how they are valued and traded · Describe derivative instrument profiles and their use in hedging risk; Explain the role of banks and other financial institutions; Apply the knowledge learnt to current happenings in financial markets.