Excerpt from course description

Financial Markets and Institutions

Introduction

Financial markets are instrumental to the workings of the economy. However, these markets do not exist in a vacuum, but evolve from the interactions of market participants within the boundaries of market institutions. The importance of financial markets have grown over time, if measured by volume traded or the share of the total output of the economy. This and the recent financial crisis have brought into light the importance how financial markets actually work.

The objective of this course is to provide an in-depth introduction into the workings of modern financial markets. There are many different “players” using these markets. On one hand, corporations, governments, and other institutions use the financial markets to raise funds (issue equity and debt) for capital investments. On the other hand, these funds are provided by private and institutional investors as well as intermediaries, banks, pension, mutual funds, etc.

More specifically, the course focuses on the mechanisms by which securities are issued and traded in modern financial markets and the implications for the efficiency and liquidity of markets. It covers all major asset classes (money markets, bonds, equities, FX, and derivatives), with a special emphaisis on interaction between financial analysis and institutional characteristics.

Course content

  1. Introduction to financial markets
  2. The financial system
  3. Interest Rate Detemination and Security Valuation
  4. Money and Bond Markets
  5. Stock and Foreign Exchange Markets
  6. Risk Management with Financial Derivatives: Hedging with Futures Contracts
  7. Risk Management in Financial Institutions: Liquidity Risk
  8. Risk Management in Financial Institutions: Interest Rate and Solvency Risk

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.