BUSFIN 1331: FINANCIAL MARKETS AND INSTITUTIONS Course Syllabus Summer 2023
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
BUSFIN 1331: FINANCIAL MARKETS AND INSTITUTIONS
Course Syllabus
Summer 2023
Course Information
Instructor: Ramana Sonti (he/him/his)
Office: 2805, Posvar Hall
Email: [email protected]
Office Hours: Over Zoom, by appointment, Tuesdays before class is best
Section: 1200
Course Description
The course provides an overview of the global financial system in which financial managers and investors operate. The course familiarizes students with key market participants and the roles they play. We will discuss financial markets and their dynamics in the context of global competition, increased capital mobility and the global exchange of goods, services and labor drawing on the recent experience of domestic and international deregulation of financial intermediaries and the financial crisis of 2008. Additionally, the various forms of risks faced by financial intermediaries will be discussed, with an emphasis on the risk management techniques available to managers of financial institutions.
Learning objectives
Objectives of this course include understanding:
§ The importance of institutions and markets in capitalism
§ The purpose and function of various asset class and markets
§ Type of risks faced by institutions and attempts to manage these risks
§ The context in which crises occur and the regulation of markets and institutions
Course prerequisites
Students in BUSFIN 1321 should have successfully completed the course BUSFIN 1030: Introduction to Finance with a minimum ‘C’ grade.
Class schedule
Lectures will be held every Tuesday starting May 16, 2023 until August 1, 2023 between 6:00 and 9:15 PM. Class instruction will be through the web, over Zoom.
Course materials
Textbook
The textbook for the course is Financial markets and institutions, Saunders, Cornett, and Erhemjamts, McGraw Hill, Eighth edition, McGraw-Hill. I will be following the textbook quite closely; a slightly older edition of this book should work fine.
Other Materials
I will regularly hand out lecture slides, and outside (press or journal) articles. All such materials, including this syllabus will be available on Canvas by 4PM, the day of class. Please check the Canvas page regularly to stay current with the course.
Student etiquette
Students are expected to be professional in their behavior during class. Being respectful and supportive of others, and willingness to help oneself and others to succeed are important behaviors to cultivate as you grow in college.
Being professional also includes regular class attendance and participation, being on time for class and not excusing themselves early without good cause. On this web based class, you are requested to turn your camera on, and keep your microphones off. You may raise your real or virtual hand at any time to ask a question or clarify something.
I realize that this class is long in duration, and we will break for about ten minutes around the halfway mark. This break is not an excuse to wander away; rather, it is an interval to recharge oneself and renew readiness for the second half of class.
Evaluation
Quizzes (Individual)
Quizzes will consist of basic questions from the day’s class. All quizzes will be administered on Canvas and automatically graded. I will open each quiz at the end of each class and keep it open for exactly 24 hours. The purpose of quizzes is to help you revise the material from the class. It also enables me to see which subject areas are most challenging to students, so we may go over them again in the next class.
Homework Assignments (Individual)
I will assign THREE problem sets as homework during the course. Homework is intended to help you work on and understand class material, while giving you practice for examinations. Being able to solve homework problems will greatly improve your performance in the exams. Late submissions will NOT be accepted. I encourage you to work in groups on the homework but require that you to turn in your submission individually.
Examination 1
Examination 1 will be midway through the course and is closed book and notes and comprises only multiple-choice questions. Many of the questions will be numerical, but there will also be some conceptual questions.
Examination 2
Examination 2 is similar to the Exam 1, is closed book and notes and will comprise only multiple- choice questions. The exam is NOT cumulative and will cover the syllabus covered after Exam 1.
On exams, you are responsible for all material covered in class (regardless of your attendance). For both exams, students should ONLY carry with them a calculator, and are not allowed to use a cell phone or other communication-enabled devices. A formula sheet containing basic mathematical formulas from the course will be provided for each examination.
Make-up policy
Students must take the exams during the stipulated class time and no make-up exams will be given. Exams are scheduled in advance so students can plan accordingly for these dates. An unexcused absence from an exam (or presentation) will result in a grade of zero for that component. In the event of an excused absence (e.g., a doctor’s note indicating that the student was medically unable to attend the scheduled class or official notification that the student was physically unable to attend the scheduled class) from any of the exams, please contact me in advance of the exam and we can work on a make-up exam shortly after the regularly scheduled time. Students for whom an in-class requirement conflicts with a religious observance should reach out to me directly so we can make alternate arrangements.
Grading
The course grade will be based on the following weights:
Class participation Quizzes Homework assignments Examination 1 Examination 2 |
6% 10% 24% 30% 30% |
Total |
100% |
Total weighted points towards the final grade will be determined as a weighted average based on the above and a course grade will be assigned based on relative performance of each student with respect to the class.
Policies
Academic Integrity
Students in this course will be expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student suspected of violating this obligation for any reason during the semester will be required to participate in the procedural process, initiated at the instructor level, as outlined in the University Guidelines on Academic Integrity. This may include, but is not limited to, the confiscation of the examination of any individual suspected of violating University Policy. Furthermore, no student may bring any unauthorized materials to an exam, including dictionaries and programmable calculators. To learn more about Academic Integrity, visit the Academic Integrity Guide for an overview of the topic. For hands-on practice, complete the Understanding and Avoiding Plagiarism tutorial.
Disability Services
If you have a disability for which you are or may be requesting an accommodation, you are encouraged to contact both your instructor and Disability Resources and Services (DRS), 140 William Pitt Union, (412) 648-7890, [email protected] (412) 228-5347 for P3 ASL users, as early as possible in the term. DRS will verify your disability and determine reasonable accommodations for this course.
Equity, Diversity, and Inclusion
The University of Pittsburgh does not tolerate any form of discrimination, harassment, or retaliation based on disability, race, color, religion, national origin, ancestry, genetic information, marital status, familial status, sex, age, sexual orientation, veteran status or gender identity or other factors as stated in the University’s Title IX policy. The University is committed to taking prompt action to end a hostile environment that interferes with the University’s mission. For more information about policies, procedures, and practices, visit the Civil Rights & Title IX Compliance web page.
I ask that everyone in the class strive to help ensure that other members of this class can learn in a supportive and respectful environment. If there are instances of the aforementioned issues, please contact the Title IX Coordinator, by calling 412-648-7860, or e- mailing titleixcoordinator@pitt.edu. Reports can also be filed online. You may also choose to report this to a faculty/staff member; they are required to communicate this to the University’s Office of Diversity and Inclusion. If you wish to maintain complete confidentiality, you may also contact the University Counseling Center (412-648-7930).
Your Well-being Matters
College/Graduate school can be an exciting and challenging time for students. Taking time to maintain your well-being and seek appropriate support can help you achieve your goals and lead a fulfilling life. It can be helpful to remember that we all benefit from assistance and guidance at times, and there are many resources available to support your well-being while you are at Pitt. You are encouraged to visit Thrive@Pitt to learn more about well-being and the many campus resources available to help you thrive.
If you or anyone you know experiences overwhelming academic stress, persistent difficult feelings and/or challenging life events, you are strongly encouraged to seek support. In addition to reaching out to friends and loved ones, consider connecting with a faculty member you trust for assistance connecting to helpful resources.
The University Counseling Center is also here for you. You can call 412-648-7930 at any time to connect with a clinician. If you or someone you know is feeling suicidal, please call the University Counseling Center at any time at 412-648-7930. You can also contact Resolve Crisis Network at 888-796-8226. If the situation is life threatening, call Pitt Police at 412-624-2121 or dial 911.
Potential course modifications
The instructor and university reserve the right to modify elements of the course during the term. The university may change the dates and deadlines for any or all courses in extreme circumstances. If either type of modification becomes necessary, reasonable notice and communication with the students will be given with an explanation and the opportunity to comment on changes. It is the responsibility of the student to check their UPitt email and course websites weekly during the term and to note any changes.
Email Communication
Each student is issued a University e-mail address ([email protected]) upon admittance. This e-mail address may be used by the University for official communication with students. Students are expected to read e-mail sent to this account on a regular basis. Failure to read and react to University communications in a timely manner does not absolve the student from knowing and complying with the content of the communications. The University provides an e-mail forwarding service that allows students to read their e-mail via other service providers (e.g., Hotmail, AOL, Yahoo). Students that choose to forward their e-mail from their pitt.edu address to another address do so at their own risk. If e-mail is lost as a result of forwarding, it does not absolve the student from responding to official communications sent to their University e-mail address.
Tentative course schedule
Class |
Date |
Topic |
Chapter Homework |
|
1 |
5/16/23 |
Course introduction, Review of security valuation |
1, 3 |
|
2 |
5/23/23 |
Interest rates and their relation to security values |
2,3 |
|
3 |
5/30/23 |
The Fed, monetary policy and exchange rates |
4,9 |
HW 1 assigned |
4 |
6/6/23 |
Money markets and Bond markets |
5,6 |
HW 1 due |
5 |
6/13/23 |
Commercial bank analysis and banking crises |
11,12,13 |
|
6 |
6/20/23 |
MIDTERM EXAM and Intro to commercial banks |
|
|
7 |
6/27/23 |
Mortgage markets and the crisis of 2008-09 |
7,24 |
HW 2 assigned |
8 |
7/11/23 |
Stock markets, Funds and investment banking |
8,16,17,18 |
HW 2 due |
9 |
7/18/23 |
On balance sheet risk management |
20, 21 |
HW 3 assigned |
10 |
7/25/23 |
Off balance sheet risk management |
10,23 |
HW 3 due |
11 |
8/1/23 |
FINAL EXAM |
|
|
2023-06-13