BUSN9237 Financial Markets and Institutions

2016

4.5

1 x 2-hour lecture weekly
1 x 1-hour seminar weekly

BUSN9212 has been successfully completed

Master of Accounting; Master of Business Administration; Master of Accounting and Finance

The topic provides students with an introduction to the financial system. It covers different financial markets, the financial instruments which are used, and the institutions which operate in the markets. Emphasis is on the Australian financial market, but sections of the topic also introduce international financial markets and their impact on the Australian economy. The topic focuses on debt, equity, foreign exchange and derivative security markets.

The topic provides students with a background in the operations of financial institutions and intermediaries, the instruments they use and the contributions they make to the efficient flow of funds within the economic system.

The broad objective of the topic is to introduce students to the Australian financial system. In doing so, it also provides a framework for understanding financial systems of other countries. The understanding gained will significantly assist students in other finance topics that they may study, and in operating in the financial sector.

On successful completion of this topic, students will be able to:

Discuss the functions of the modern financial system, the role of financial institutions and markets and the different types of financial instruments.
Describe the main activities of banks and non-bank financial institutions including their sources and uses of funds and the way in which their activities are regulated.
Describe equity funding alternatives and the associated regulatory controls and factors that influence equity capital markets. Calculate the price of shares based on the various equity funding alternatives.
Explain the characteristics of various forms of short-term, medium to long-term and government debt and identify the advantages and disadvantages for borrowers and lenders. Calculate the pricing of and evaluate the various debt instruments.
Explain the interest rate risk and analyse the structure and benefits associated with interest rate risk measurement.
Identify the participants in and describe the mechanics of foreign exchange markets. Describe the conventions for the quotation of foreign exchange, determine a forward exchange rate and recognise other factors which influence foreign exchange rates.
Explain the role of derivative products in risk management and develop a hedging strategy using futures contracts and options.

Key dates and timetable

Timetable details for 2016 are no longer published.

This information is from current details held on the Student Information System. Please report any errors or omissions to the relevant College Office.