Financial Markets and Institutions (FIN301)
Credits: 3

Description:
Course is aimed at study of the fundamentals of financial markets and financial instruments, the features of the formation of modern financial markets, on the practical application of financial instruments, the types of financial institutions and their roles and functions in the financial markets

Upon successful completion, students will have the knowledge and skills to:
* demonstrate a working knowledge of financial terms and concepts analyse how financial markets and instruments operate and how they can be used to achieve economic objectives;
* understand and criticaly engage in profits and risks faced by investors and strategies to control these profits and risks;
* demonstrate the ability to think independently, reflectively and analytically for work in regulating the financial sector, financial institutions or various areas of government.

Topics include: Debt, equity, derivative markets, commercial bank, non-bank operation.

Learning outcomes:
Understand the basic functions and structures of the major financial markets and financial institutions
Understand the simple models for determining the pricing and behavior of interest rate, foreign exchange, securities, derivatives
Understand the key role of central bank plays in the financial systems and how does central bank conduct monetary policy
Understand the regulatory and risk management issues of financial institutions
Analyze and evaluate the current financial market news and issues and their implications
Demonstrate the ability to produce a clear oral report and/or academic written report and deliver presentations on topics related to financial markets and institutions
Practice ability to work as part of an effective team to prepare report and presentation

Student tasks:
1. Class attendance is strongly encouraged. Attend at least 80% of class hours in order to be accepted to the final examination
2. Actively participate in class activities
3. Fulfill tasks given by instructor after class
4. Use their own laptop in class only for learning purposes
5. Read the textbook in advance
6. Access the course website (http://flm.fpt.edu.vn) for up-to-date information and materials of the course, for online supports from teachers and other students, and for practicing and assessment.

Tools:
- Textbook and all learning materials provided on FLM
- Internet

Materials:
description: Financial Institutions and Markets
author: Jeff Madura
publisher: South-Western Cengage Learning
published_date: 2020
edition: 13th
isbn: 9789814922807
note: Chọn một trong 3 ấn bản. Ưu tiên mua ấn bản mới nhất
description: Financial Institutions and Markets
author: Madura, Jeff
publisher: South-Western Cengage Learning
published_date: 2012
edition: 10th
isbn: 978-0-538-48217-2
description: Financial Institutions and Markets
author: Madura, Jeff
publisher: South-Western Cengage Learning
published_date: 2010
edition: 9th
isbn: 978-1-4390-3887-1
description: An Introduction to Financial Markets: A Quantitative Approach
author: Brandimarte P
publisher: Wiley
published_date: 2018
isbn: 9781118014776
note: Wiley - Vital Source

Assessments:
category: Class Participation
type: on-going
weight: 10.0
no_question: Each student should make at least 1 individual presentation during the course in front of the class. Topics will be varied based on the topics in the textbook. In addition, students are required to do exercises and other activities
category: Essay test
type: on-going
weight: 15.0
duration: In class (45-60 minutes)
question_type: CLO2, CLO3, CLO4, CLO5
no_question: Multiple choice questions and/or Criticial thinking (exercises) questions
knowledge_and_skill: OP 1- Only MCQ: 40-50 questions
OP 2- Only Critical thinking questions/ Exercises : 3-4 question.
OP 3- Mix: 15-20 mcqs + 2-3 critical thinking questions/exercises
grading_guide: Cover chapters 3, 6, 7, 10, 12, 13, 14, 15, 16, 19; 23 in form of:
* Only MCQ: 40-50 questions
* Only Critical thinking questions/ Exercises : 4-5 question.
* Mix: 15-20 mcqs + 2-3 critical thinking questions/exercises
note: Paper/computer-based testing
category: Group Assignment
type: on-going
weight: 20.0
duration: OP1: Presentation in class and report submission; OP2: (For Constructivism Approach only): Follow lecturer's proposal
question_type: CLO1, CLO2, CLO3, CLO4
no_question: OP1: Group problem solving: It can be composed of different parts like reports, essays, exercises, and bonus points for in-class participation. Reports should cover the current state of Vietnam's financial markets and institutions.
OP2: (For Constructivism Approach only): Follow lecturer's proposal
knowledge_and_skill: Specified by instructor
grading_guide: OP1: Thinking creatively, making decisions, solving problems,Personal qualities: Individual responsibility, self-esteem, sociability, self-management, and integrity.
OP2: (For Constructivism Approach only): Follow lecturer's proposal
note: Stipulated by instructor
category: Midterm Test (MT)
type: on-going
weight: 15.0
duration: In class (45-60 minutes)
question_type: CLO1, CLO2, CLO3, CLO4, CLO5
no_question: Multiple choice questions and/or Criticial thinking (exercises) questions.
For example:
▪ Part 1 (40%): 20 multiple choice questions in 20 minutes
▪ Part 2 (60%): 3 exercises in 30 minutes
knowledge_and_skill: Multiple choice questions and/or Criticial thinking (exercises) questions.
For example:
▪ Part 1 (40%): 20 multiple choice questions in 20 minutes
▪ Part 2 (60%): 3 exercises in 30 minutes
grading_guide: Chapters covered are 1, 2, 3, 6, 7, 10, 12, 13, 14. There are at least 2 multiple choice questions on each chapter.
note: Paper/computer-based testing
category: Progress Test
type: on-going
weight: 10.0
duration: OP1: In class (30-40 minutes);
OP2 (For Constructivism Approach only): Follow lecturer's proposal
question_type: CLO1, CLO2, CLO3, CLO4
no_question: OP1: Multiple choice questions
OP2 (For Constructivism Approach only): Follow lecturer's proposal
knowledge_and_skill: 20-30 questions in total; cover chapters 1, 2, 3, 6
grading_guide: Integration of studied knowledge and skills
note: Paper/computer-based testing
category: Final Exam
type: Final exam
weight: 30.0
duration: 60 minutes
question_type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6
no_question: Multiple choice questions
knowledge_and_skill: 50 MC questions
grading_guide: there are 2-3 MC questions on each of the chapters 1, 2, 3, 6, 7, 10, 12, 13, 14, 15, 16, 17, 19, 23.Chapters 21, 22, 24, 25 are not tested.
note: computer-based testing

Schedule:
session: -Course Overview
-Introduction to AI Integration
-Chapter 1: The Role of Financial Markets and Institutions
Role of financial markets
Securities traded in financial markets
learning_outcomes: IT
materials: Slides Chapter 1,2,3,6,7
session: Chapter 1: The Role of Financial Markets and Institutions (cont')
Role of financial institutions
Systemic Risk among Financial Institutions
learning_outcomes: T
materials: Slides Chapter 10,12,13,14,15
session: Chapter 2: Interest Rate Determination
Loanable funds theory
Factors that affect interest rates
Forecasting interest rates

[Practice: 1 period(s)]
learning_outcomes: T
U
materials: Slides Chapter 16,17,19,21,22
session: Chapter 2: Interest Rate Determination (cont')
Loanable funds theory
Factors that affect interest rates
Forecasting interest rates

[Practice: 1 period(s)]
learning_outcomes: T
U
materials: Slides Chapter 23,24,25
session: Chapter 3: Interest Rate Structure
Why debt security yields vary
Modeling the Yield to be Offered on a Debt Security
learning_outcomes: T
session: Chapter 3: Interest Rate Structure (cont')
A closer look at the term structure

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Group Assignment Guidelines
learning_outcomes: U
session: Chapter 6: Money Markets
Money market securities
learning_outcomes: T
session: Chapter 6: Money Markets (cont')
Money market securities
learning_outcomes: T
session: Chapter 6: Money Markets (cont')
Institutional use of money markets
learning_outcomes: T
session: Chapter 6: Money Markets (cont')
Globalization of money markets
learning_outcomes: T
session: Chapter 6: Money Markets (cont')
Point counter-point: Should Firms Invest in Money Market Securities?

[Practice: 1 period(s)]
learning_outcomes: U
session: Chapter 7: Bond Markets
Background on bonds
Treasury and federal agency bonds
Municipal bonds

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 7: Bond Markets (cont')
Corporate bonds
Globalization of Bond and Loan Markets
learning_outcomes: T
session: Chapter 7: Bond Markets (cont')
Other types of long-term debt securities
Point counter-point: Should Financial institutions invest in junk bonds?

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Progress Test 1 (Chapters 1, 2, 3, 6) - Review
session: Chapter 10: Stock Offerings and Investor Monitoring
Private equity
Public equity
Initial public offerings
learning_outcomes: T
session: Chapter 10: Stock Offerings and Investor Monitoring (cont')
Stock offerings and repurchases
Stock exchanges
Monitoring publicly traded companies
Market for corporate control
Globalization of stock markets

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 12: Market Microstructure and Strategies
Stock market transactions
How stock transactions are executed
learning_outcomes: T
session: Chapter 12: Market Microstructure and Strategies (cont')
High Frequency Trading
Regulation of stock trading
Trading international stocks

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Progress Review & Practice
[Practice: 1 period(s)]
learning_outcomes: U
session: Chapter 13: Financial Futures Markets
Background on financial futures
Interest rate futures contracts

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 13: Financial Futures Markets (cont')
Background on financial futures
Interest rate futures contracts

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 13: Financial Futures Markets (cont')
Stock index futures
Single stock futures

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 13: Financial Futures Markets (cont')
Stock index futures
Single stock futures

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 13: Financial Futures Markets (cont')
Risk of trading futures contracts
Globalization of futures markets

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 13: Financial Futures Markets (cont')
Risk of trading futures contracts
Globalization of futures markets

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 14: Options Markets
Background on options
Determinants of stock option premiums
learning_outcomes: T
session: Chapter 14: Options Markets (cont')
Speculating with stock options

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 14: Options Markets (cont')
Hedging with stock options
Options on ETFs and stock indexes

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 14: Options Markets (cont')
Options on futures contracts
Options as executive compensation
Globalization of options markets

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Progress Review & Practice
[Practice: 2 period(s)]
learning_outcomes: U
session: Progress Review & Practice
[Practice: 2 period(s)]
learning_outcomes: U
session: Midterm Test (Chapters 1, 2, 3, 6, 7, 10, 12, 13, 14) – Review
learning_outcomes: U
session: Midterm Test (Chapters 1, 2, 3, 6, 7, 10, 12, 13, 14) – Review
learning_outcomes: U
session: Assignment Discussion
learning_outcomes: U
session: Chapter 15: Interest Rate Derivative Markets
Background
Type of interest rate swaps
Risks of interest rate swaps
learning_outcomes: T
session: Chapter 15: Interest Rate Derivative Markets (cont')
Pricing interest rate swaps
Performance of interest rate swaps

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 15: Interest Rate Derivative Markets (cont')
Interest rate caps, floors, and collars
Credit default swaps
Globalization of swap markets

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 16: Foreign Exchange Derivative Markets
Foreign Exchange Markets and Systems
Factors affecting exchange rates
learning_outcomes: T
session: Chapter 16: Foreign Exchange Derivative Markets (cont')
Foreign Exchange Markets and Systems
Factors affecting exchange rates
learning_outcomes: T
U
session: Chapter 16: Foreign Exchange Derivative Markets (cont')
Forecasting exchange rates
Foreign exchange derivatives

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 16: Foreign Exchange Derivative Markets (cont')
Forecasting exchange rates
Foreign exchange derivatives

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 16: Foreign Exchange Derivative Markets (cont')
International arbitrage
learning_outcomes: T
session: Chapter 16: Foreign Exchange Derivative Markets (cont')
International arbitrage

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 17: Commercial Bank Operations
Background on commercial banks
Bank sources of funds
learning_outcomes: T
session: Chapter 17: Commercial Bank Operations (cont')
Uses of funds by banks
Off-balance sheet activities
International banking
learning_outcomes: T
U
session: Submission of Assignment - Review
learning_outcomes: U
session: Chapter 19: Bank Management
Bank goals, strategy, and governance
Managing liquidity
Managing interest rate risk
Managing credit risk
Managing market risk

[Practice: 1 period(s)]
learning_outcomes: T
session: Chapter 19: Bank Management (cont')
Integrated bank management
Managing risk of international operations

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 19: Bank Management (cont')
Integrated bank management
Managing risk of international operations

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 23: Mutual Fund Operations
Background on mutual funds
Mutual fund categories
Performance of mutual funds
Money market funds
Other types of funds

[Practice: 1 period(s)]
learning_outcomes: T
U
session: Chapter 21: Thrift Operations
Background on savings institutions
Sources and uses of funds
Credit Unions

Chapter 22: Finance Operations
Types of finance companies
Sources and uses of funds
learning_outcomes: T
session: Chapter 24: Securities Operations
Functions of securities firms

Chapter 25: Insurance and Pension Fund Operations
Background
Life insurance operations
Other types of insurance operations
Background on pension funds
Pension fund management
learning_outcomes: T
session: Essay test
learning_outcomes: U
session: Essay test - Review
learning_outcomes: U
session: Course Review & Practice
[Practice: 2 period(s)]
learning_outcomes: U
session: Course Review & Practice
[Practice: 2 period(s)]
learning_outcomes: U
session: Course Review & Practice
[Practice: 2 period(s)]
learning_outcomes: U
session: Course Review & Practice
[Practice: 2 period(s)]
learning_outcomes: U