Students
AFIN837 – Capital Markets
2014 – S1 Day
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Mehdi Sadeghi
Contact via mehdi.sadeghi@mq.edu.au
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|---|---|
| Credit points |
Credit points
4
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| Prerequisites |
Prerequisites
ACST603 or AFIN858 or admission to MCom or MIntBus or MEc or MActPrac prior to 2011
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
This unit provides an overview of the operation of the capital markets in Australia. The financial institutions are described and the securities offered by these institutions are reviewed. Emphasis is placed on the financial instruments available to companies and investors from the equity, debt and derivative markets.
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Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- Distinguish between various sectors of the financial market and the nature of the financial claims of the participants
- Identify the factors responsible for trends in regulation, the role of and the growth in the sources and uses of funds of the banking sector and the non-bank financial institutions
- Critically evaluate the relative merits of short term and long term debt and changes in the supply and demand for particular debt securities
- Explain the characteristics of corporate funding sources and the processes involved in raising funds
- Analyse the role of futures and options in the management of risk by the market participants
- Review the complex interactions between the banks, government and Reserve
Assessment Tasks
| Name | Weighting | Due |
|---|---|---|
| Class Test | 25% | Week 7 |
| Essay | 25% | Week 11 |
| Final Examination | 50% | Final exam period |
Class Test
Due: Week 7
Weighting: 25%
Mid-semester test (Week 7) 25%
The 90-minute mid-semester test is designed to help you consolidate your understanding of core concepts through Multiple Choice questions, thus helping you meet and monitor your progress in attaining learning objectives (1)-(3). This test will cover topics from the first 6 weeks of lectures and the associated reading materials. You are expected to present yourself for the test in Lecture7 at the enrolled time and place of your normal lecture.
If you couldn't attend the midterm test for a legitimate reason, the weight of the test will be added to your final exam mark.
On successful completion you will be able to:
- Distinguish between various sectors of the financial market and the nature of the financial claims of the participants
- Identify the factors responsible for trends in regulation, the role of and the growth in the sources and uses of funds of the banking sector and the non-bank financial institutions
- Explain the characteristics of corporate funding sources and the processes involved in raising funds
Essay
Due: Week 11
Weighting: 25%
Essay worth 25% of the final mark. You should form a group of 3-4 members from your class in the first week of the lecture and elect a group leader. It is important for each group member to contribute substantially to the final submitted work. The responsibility of the group leader is to upload the report on behalf of the group to Turnitin on ilearn on week 11 (the cut-off point is Friday at 5PM). All group members are equally responsible for the entire submitted assignment. The team leader is also expected to maintain a weekly journal, registering the contribution of each team member during the week. The Journal must be submitted with the assignment in week 11. Extra evidence you wish to provide, such as tables and graphs must be placed in the text. They should be labelled and placed directly above or wrapped in the paragraph that they are discussed in. Do not put figures in the appendix, they will not be marked. The main body of your report should not exceed 3500 words, typed with 12-point font, 1.5 spaced. A good essay shows research and clarity of argument. Essays that are not proof-read will be marked down.
No extensions will be granted. Late tasks will be accepted up to 72* hours after the submission deadline. There will be a deduction of 20%* of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 40% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved.
On successful completion you will be able to:
- Identify the factors responsible for trends in regulation, the role of and the growth in the sources and uses of funds of the banking sector and the non-bank financial institutions
- Explain the characteristics of corporate funding sources and the processes involved in raising funds
- Review the complex interactions between the banks, government and Reserve
Final Examination
Due: Final exam period
Weighting: 50%
The final examination will be a 3-hour paper. All topics are examinable in the final examination. To be awarded a passing grade in this unit (SNG of 50% or higher) a student must pass the final exam (attain a mark of 50% or higher). The timetable for this exam will be available in Draft form approximately eight weeks before the commencement of the examinations and in Final form approximately four weeks before the commencement of the examinations.
On successful completion you will be able to:
- Distinguish between various sectors of the financial market and the nature of the financial claims of the participants
- Identify the factors responsible for trends in regulation, the role of and the growth in the sources and uses of funds of the banking sector and the non-bank financial institutions
- Critically evaluate the relative merits of short term and long term debt and changes in the supply and demand for particular debt securities
- Explain the characteristics of corporate funding sources and the processes involved in raising funds
- Analyse the role of futures and options in the management of risk by the market participants
- Review the complex interactions between the banks, government and Reserve
Delivery and Resources
Classes
There are twelve lectures and one in-class Mid-Semester test conducted over thirteen weeks in the following classes.
The timetable for classes can be found on the University web site at:http://www.timetables.mq.edu.au/
It is an assessment requirement of this unit that students attend classes.
Required text and/or materials
C. Viney, Financial Institutions, Instruments and Markets, McGraw-Hill, Seventh edition, 2013. The textbook may be purchased from the Macquarie University Co-op Bookshop, and students are advised to buy the book to improve their understanding of the lectures.
Technology Used and Required
Non-programmable Calculators will be allowed in the mid-term test or the final exam. Students are advised to bring their calculators to class. You are expected to show all workings for your calculations. All calculations should be to two decimal places, and rounding should be left till the end. Excessive and premature rounding will be penalised.
Unit web page
The course material is available in http://ilearn.mq.edu.au. Students are advised to check the unit website regularly, and ensure that all material posted on the website can be accessed without difficulties. If you are unable to access any of the material on the website, check with your classmates first before notifying your lecturer of the problem.
Changes from the last offering
There have been no changes from the last offering.
Unit Schedule
|
Lecture |
Week Starting (Monday) |
Topic |
Readings |
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1 |
3rd March 2014 |
A modern financial system |
Ch.1 andlecturenotes |
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2 |
10thMarch 2014 |
Commercial banks |
Ch.2andlecturenotes |
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3 |
17th March 2014 |
Non-bank financial institutions |
Ch.3andlecturenotes |
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4 |
24thMarch 2014 |
The share market and corporations |
Ch.4andlecturenotes |
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5
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31stMarch 2014 |
Issuingnewequity&investingintheshare market |
Ch.5,Ch.6sections1-3and lecturenotes |
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6 |
7thApril 2014 |
Performance measurement, sharepricing& forecasting in equity market |
Ch.6sections4-6,Ch.7andlecturenotes |
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Secession1 Break |
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7 |
28th April 2014 |
Mid –Semester Test (2 5 %) Ch.1 to 7 (To be confirmed ) |
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8 |
5thMay 2014 |
Short-term debt |
Ch.9,andlecturenotes |
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9 |
12thMay2014 |
Medium-to-long term debt |
Ch.10,and lecturenotes |
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10 |
19th May2014 |
Futures contracts and forward rate agreements |
Ch.19,and lecturenotes |
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11 |
26th May 2014 |
Options
Essay due(25%) |
Ch.20,and lecturenotes |
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12 |
2nd June 2014 |
Government debt, monetary policy, and payment system |
Ch.12,and lecturenotes |
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13 |
9th June 2014 |
An introduction to interest rate determination and forecasting |
Ch.13,andlecturenotes |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html
Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Supplementary Exam
Supplementary Exams Further information regarding supplementary exams, including dates, is available here http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
IT Help
For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/.
When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
PG - Discipline Knowledge and Skills
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Learning outcomes
- Distinguish between various sectors of the financial market and the nature of the financial claims of the participants
- Identify the factors responsible for trends in regulation, the role of and the growth in the sources and uses of funds of the banking sector and the non-bank financial institutions
- Critically evaluate the relative merits of short term and long term debt and changes in the supply and demand for particular debt securities
- Explain the characteristics of corporate funding sources and the processes involved in raising funds
- Analyse the role of futures and options in the management of risk by the market participants
- Review the complex interactions between the banks, government and Reserve
Assessment tasks
- Class Test
- Final Examination
PG - Critical, Analytical and Integrative Thinking
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Learning outcomes
- Distinguish between various sectors of the financial market and the nature of the financial claims of the participants
- Critically evaluate the relative merits of short term and long term debt and changes in the supply and demand for particular debt securities
- Explain the characteristics of corporate funding sources and the processes involved in raising funds
- Analyse the role of futures and options in the management of risk by the market participants
Assessment tasks
- Class Test
- Essay
- Final Examination
PG - Research and Problem Solving Capability
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
Learning outcomes
- Distinguish between various sectors of the financial market and the nature of the financial claims of the participants
- Identify the factors responsible for trends in regulation, the role of and the growth in the sources and uses of funds of the banking sector and the non-bank financial institutions
- Critically evaluate the relative merits of short term and long term debt and changes in the supply and demand for particular debt securities
- Explain the characteristics of corporate funding sources and the processes involved in raising funds
- Analyse the role of futures and options in the management of risk by the market participants
Assessment tasks
- Class Test
- Essay
Research and Practice
This unit gives you practice in applying research findings in your essay.