Year
2016
Units
4.5
Contact
1 x 2-hour workshop weekly
1 x 1-hour on-line lecture weekly
Enrolment not permitted
1 of BUSN1210, BUSN2008 has been successfully completed
Course context
Bachelor of Commerce
Topic description
The topic provides students with an introduction to financial markets including debt (bond) markets, equity (share) markets, foreign exchange markets and derivatives markets. On completing the topic, students should be able to explain the role that markets play in the economy, the role of participants in the various markets and the use of the financial instruments for financing and risk management purposes.
Educational aims
This topic aims to explain:
  • the role that markets play in the economy
  • how people buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other items of value at low transaction costs and at prices that reflect the global market.
Expected learning outcomes
Upon successful completion of this topic students will be able to:
  1. Describe the main features of financial markets
  2. Explain the role that financial intermediaries play in financial markets; including the role played by banks and non-bank financial institutions
  3. Distinguish between debt and equity financing
  4. Describe the different financing instruments that are available for both private sector and government sector financing requirements, and develop an appreciation of the appropriate forms of financing for different purposes
  5. Discuss the various forms of equity finance and the regulatory controls on equity capital markets
  6. Explain the different approaches to forecasting share price movements
  7. Describe the functions and operations of foreign exchange markets and perform calculations with respect to exchange rates
  8. Explain the role of derivative securities in risk management
  9. Describe ethical principles and the laws and codes of ethics applicable to financial markets.