Students

AFIN8037 – Capital Markets

2022 – Term 1, In person-scheduled-intensive, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Damian Bridge
damian.bridge@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
(Admission to MAppFin or MAppFin(Adv) or MFin or MActPrac) or (ACST603 or ACST6003 or AFIN858)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit provides an overview of the operation of the capital markets with evidence from Australian and international markets. 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.

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:

  • ULO1: Distinguish between various sectors of the financial market and the nature of financial assets.
  • ULO2: 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 non-bank financial institutions.
  • ULO3: Explain the characteristics of corporate funding sources and the processes involved in raising funds.
  • ULO4: Review the complex interactions between the banks, government and central bank.
  • ULO5: Work productively in a group to undertake financial analysis.

General Assessment Information

Late submissions of assessments  

Unless a Special Consideration request has been submitted and approved, no extensions will be granted. There will be a deduction of 10% of the total available assessment-task marks made from the total awarded mark for each 24-hour period or part thereof that the submission is late. Late submissions will only be accepted up to 96 hours after the due date and time.

No late submissions will be accepted for timed assessments – e.g., quizzes, online tests.

Table 1: Penalty calculation based on submission time

Submission time after the due date (including weekends)

Penalty (% of available assessment task mark)

Example: for a non-timed assessment task marked out of 30

< 24 hours

10%

10% x 30 marks = 3-mark deduction

24-48 hours

20%

20% x 30 marks = 6-mark deduction

48-72 hours

30%

30% x 30 marks = 9-mark deduction

72-96 hours

40%

40% x 30 marks = 12-mark deduction

> 96 hours

100%

Assignment won’t be accepted

Special Consideration

To request an extension on the due date/time for a timed or non-timed assessment task, you must submit a Special Consideration application. An application for Special Consideration does not guarantee approval.

The approved extension date for a student becomes the new due date for that student. The late submission penalties above then apply as of the new due date

 

Assessment Tasks

Name Weighting Hurdle Due
Online Quiz 0% No Saturday 22nd January
Mid Session Test 20% No Friday 28th January
Group Assignment 20% No Wednesday 16th February 5pm
Final Examination 60% No Saturday 19th February

Online Quiz

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 1 hours
Due: Saturday 22nd January
Weighting: 0%

 

The online quiz will consist of 5 to 10 questions and will be available on iLearn. Please use the quiz result as an indicator of whether you are progressing satisfactorily in the unit.

 
On successful completion you will be able to:
  • Distinguish between various sectors of the financial market and the nature of financial assets.
  • Review the complex interactions between the banks, government and central bank.

Mid Session Test

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 15 hours
Due: Friday 28th January
Weighting: 20%

 

A mid session test of one hour will be held during the session.

 
On successful completion you will be able to:
  • Distinguish between various sectors of the financial market and the nature of financial assets.
  • 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 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 central bank.

Group Assignment

Assessment Type 1: Report
Indicative Time on Task 2: 15 hours
Due: Wednesday 16th February 5pm
Weighting: 20%

 

The assignment will cover quantitative and qualitative analysis of a finance scenario or problem. Students will be required to produce a report of 1,500-2,000 words.

 
On successful completion you will be able to:
  • Distinguish between various sectors of the financial market and the nature of financial assets.
  • 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 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 central bank.
  • Work productively in a group to undertake financial analysis.

Final Examination

Assessment Type 1: Examination
Indicative Time on Task 2: 20 hours
Due: Saturday 19th February
Weighting: 60%

 

A two hour exam will be held during the University Examination Period.

 
On successful completion you will be able to:
  • Distinguish between various sectors of the financial market and the nature of financial assets.
  • 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 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 central bank.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Writing Centre for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

Classes

All lectures will be recorded and made available to students in the beginning of the week.

Online interactive sessions to be held on the following dates and time (Sydney time):

  • Wed 12 Jan 2022, 5-6pm
  • Wed 19 Jan 2022, 5-7pm
  • Wed 26 Jan 2022, 5-7pm
  • Sun 6 Feb 2022, 5-7pm
  • A revision session to be held in the week commencing 7 Feb. Date and time will be confirmed later

Recommended text

C. Viney, Financial Institutions, Instruments and Markets, McGraw-Hill, Ninth Edition, 2019. Students are advised to use the book to improve their understanding of the lectures. Older versions are also fine. 

Unit web page

The course material is available at https://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.

Unit Schedule

Topic

Week Beginning

Topic

Textbook Chapters

1

10th January

A modern financial system.

1

2

10th January

Commercial banks.

2

Online Class Wednesday 12 January 5pm

3

17th January

Non-bank financial institutions. 

3

4

17th January

The share market and corporations. 

4

5

17th January

Issuing new equity & investing in the share market.

5, and Ch.6 sections1-3

Online Class Wednesday 19 January 5pm

Online Quiz – 0% - Saturday 22nd January

6

24th January

Performance measurement, share pricing & forecasting in equity market.

6 sections 4-6, and Ch.7

7

24th January

Short-term debt.

9

8

24th January

Medium-to-long term debt.

10

Online Class Wednesday 26 January 5pm

9

24th January

Mid session test (20%) covering topics 1 to 8.

 

Mid Session Test – 20% - Friday 28th January

10

31st January

Futures contracts and forward rate agreements.

19

11

31st January

Options. 

20

Online Class Sunday 6th February 5pm

12

7th February

Government debt, monetary policy, and the payments system.

12

13

7th February

An introduction to interest rate determination and forecasting.

13

Online Class Sunday 13th February 5pm

Group Assignment Due Wednesday 16th February 5pm

Final Exam Saturday 19th February

 

 

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

The Writing Centre

The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via AskMQ, or contact Service Connect.

IT Help

For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/. 

When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.

Changes from Previous Offering

Updated textbook to the newest version.

Unit information based on version 2022.03 of the Handbook