Introduction
Financial markets are the pillar of the modern economy and society. They encourage efficient asset allocation and growth. Over the years they have evolved as a net of interactions of market participants within the boundaries of market institutions. Growing specialization of various marketplaces and participants and rapid innovation deepen the complexity of the financial environment. This, together with the recent financial crises, brings into light the necessity to understand how financial markets work.
The course focuses on the structure and the role of financial markets in the modern world. It also overviews different participants and mechanisms by which securities are traded, as well as the implications of trading mechanisms for the efficiency and liquidity of markets.