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A practical and hands-on course on the valuation and financial management of corporations, covering topics such as market basics, financial institutions and markets, and macroeconomic factors. The course includes lectures, practice problems, homework assignments, quizzes, and exams.
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Financial Institutions and MarketsFIN 304 Dr. Andrew L. H. Parkes “A practical and hands on course on the valuation and financial management of corporations” 卜安吉
Syllabus and Our Course • The syllabus provides an outline of what we will do this semester: • Chapter 3 - 4, 8 – 12, 15, 16, 19 - 24 of the textbook. • This week I will talk very briefly about Chapter 1 and then 3 & 4 about Market Basics. The required textbook Financial Institutions and Markets Day 1
Lectures and Practice Problems • Lectures: 2 to 4 hours per week I will introduce the new material to you. • Practice Problems: We will do assignments from my slides and from the textbook. • You will have to prepare assignments for every class; there is NO class without homework (sometimes just reading). • You will do all of your own work during the course. Copied assignments will be given 0 marks. • Notice you must have access to WSJ, FT (also investopedia.com – Forbes, etc.). Keep up to date with Finance related issues Financial Institutions and Markets Day 1
Grading • Mid-term test - 20% • Final Exam - 50% • Homework - 20% • Quizzes - 10% • Total - 100% Financial Institutions and Markets Day 1
Financial Institutions and Markets (Ch. 1) • Financial Management IS required for this course! • Look at the Definitions: Markets, Security, Assets, Bond, Interest rate, Stock, Foreign Exchange Market (rate) … Financial Institutions and Markets Day 1
SEE MY WEBSITE: andrewparkes.com • Often and regularly • Kept ahead of class • Links and PPT • Other information • andrew@andrewparkes.com Like this => Total Public Debt Outstanding $ 9,139,880,193,861.94 - 11/29/2007 $ 10,647,917,555,364.39 -11/26/2008 $ 13,788,289,275,079.99 – 11/24/2010 Financial Institutions and Markets Day 1
Yuan trades at what rate today? • Why do I say the yuan is pegged? • Three Goals of any MACROECONOMY • Full Employment – Unemployment Rate • Economic Growth – REAL GDP • Price Stability - CPI • KNOW what real GDP and CPI mean • Quiz this class!!! – 5 pts Financial Institutions and Markets Day 1
U. S. Real GDP 2006 - 2010 http://www.bea.gov/newsreleases/national/gdp/gdp_glance.htm Financial Institutions and Markets Day 1 The Recession is over!
“Developed” Country Real GDP Forecasts Q3 of 2009 at top Q4 of 2009 below 2009 forecast at right side (these are ALL negative!) http://www.economist.com/daily/news/displaystory.cfm?story_id=14389086&fsrc=nwl Financial Institutions and Markets Day 1
Prices of Consumer Goods 1913-2010 http://research.stlouisfed.org/fred2/graph/?s[1][id]=CPIAUCNS Financial Institutions and Markets Day 1
CPI Percentage Changes 1913-2010 http://research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=CPIAUCNS&s[1][transformation]=pc1 Financial Institutions and Markets Day 1
KNOW WHO THE FED IS!?! • See my website if you need more info … • PPT from week 2 or 3 Intro to Finance • U.S. Macroeconomic Sites • People’s Bank of China • Website is available from andrewparkes.com • Know who they are and what they do! • These are the most important financial institutions in this class! Financial Institutions and Markets Day 1
Problem Set 1: CPI and GDP deflator • Calculation of Price Indices • Paasche – based on current year quantities • Laspeyres – based on past year quantities • Easy for you, eh? • Do next class – Thursday, Dec. 2, 2010 Financial Institutions and Markets Day 1