BUECO6923 Course Description CUCST Semester 1 2012.Doc

Course Description: BUECO6923 Financial Markets and Institutions

School/Portfolio: The Business School

Course Code/ID: BUECO6923

Course Title: Financial Markets and Institutions

Teaching Location: CUCST- Malaysia

Program(s): Master of Business Administration

Author: David Spiers

Level: Advanced

Semester: Semester 1, 2012

Prerequisite(s): Successful completion of any four MBA courses

Corequisite(s): Nil

Exclusion(s): Nill

Credit Points/Progress Units:

15

ASCED Code: 080101

Adopted Reference Style APA

Semester 1, 2012- CUCST-Malaysia of 11CRICOS Provider Number 00103D


1 COURSE ORGANISATION:

1.1 Handbook/sFor full details of programs and school procedures, please refer to the University of Ballarat handbook (http://www.ballarat.edu.au/ubhandbook-2011) and The Business School Programs Handbooks available at http://www.ballarat.edu.au/business/handbooks

Important information in located in the handbooks, including: Student responsibility Special Consideration process and forms Submission of tasks and assignments Appeal process

Unsatisfactory progress - Early Intervention

Grading codes

1.2 StaffThe most appropriate contact is your teacher. If necessary they will contact the Course Coordinator at the University of Ballarat.

Coordinator Lecturer TutorName: David Spiers Koh Boon Cheng Koh Boon ChengPhone: (03) 53279431Fax: (03) 53279405Email: [email protected]:Web:

1.3 Consultation Hours To be arranged by your lecturer

1.4 Prescribed TextThis subject will be conducted on the presumption that students have a copy of:Viney.C (2009). McGrath’s Financial Institutions, Instruments and Markets 6th Edition. Sydney: McGraw-Hill

1.5 Plagiarism Plagiarism is presenting someone else work as your own and is a serious offence with serious consequences. As set out in the University Regulation 6.1.1, students who are caught plagiarising will, for a first offence, be given a zero mark for that task. A second offence will result in a failing grade for the course(s) involved and any subsequent offence will be referred to the Student Discipline Committee. Student must be aware of the University Regulation 6.1.1 Student Plagiarism, available at http://www.ballarat.edu.au/legislation/6.1.1-plagiarism. The link to the library website for more information is: http://www.ballarat.edu.au/library/assignment-and-research-help/referencing

Students must: fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or

descriptions; acknowledge all direct quotations; and not submit work that has not been researched and written by another person


http://www.ballarat.edu.au/library/assignment-and-research-help/referencing

http://www.ballarat.edu.au/library/assignment-and-research-help/referencing

http://www.ballarat.edu.au/legislation/6.1.1-plagiarism

http://www.ballarat.edu.au/business/handbooks

http://www.ballarat.edu.au/ubhandbook-2011


Turnitin – Turnitin is a software application that allows students to check their assignments for referencing and citation omission or incorrect paraphrasing.

You will be informed by your lecturer to submit your assignments through the task assessment drop box in UBOnline.

1.6 UBOnlineUBOnline is used to host course resources for all courses. Students can download lecture and tutorial notes to support class participation. Students login to the UBOnline at

https://ubonline.ballarat.edu.au/login/index.php.

2 OBJECTIVES: Knowledge understand the economic functions of financial instruments, markets, institutions and the

Central Bank ( Bank Negara Malaysia) comprehend the developments and challenges facing the Malaysian and international financial

systems recognise risks in corporate financial management

Skills be able to critically examine different functions of financial instruments, financial markets and

financial institutions in corporate financial management possess the ability to analyse the behaviour and performance of the financial system as a

financial environment in which a company operates acquire the skills to analyse and manage risks in corporate financial management.

Values Appreciate theoretical principles and latest developments in financial economics Foster a professional approach to corporate financial management Promote the skills of economic reasoning and argument in oral and written form.

3 CONTENT:

Topics and sub-topics may include:* PART 1 - Introduction to the financial system and its components: financial

instruments, financial markets, financial institutions, foreign markets and institutions, financial system and financial mathematics


https://ubonline.ballarat.edu.au/login/index.php


* PART 2 - Functions and operations of financial markets: securities markets such as money market, bond (debt) market, stock (equity) market and foreign exchange market; derivative markets such as futures, options and swap markets

* PART 3 - Functions and operations of financial institutions: banks; non-bank financial institutions; the Central Bank (Bank Negara Malaysia), the evolution of the Malaysian financial system (regulation and deregulation), the evolution of the international financial system

* PART 4- Managing financial risks: risks in financial markets and risks in financial intermediation such as interest rate risk, purchasing power risk, foreign exchange risk.

4 LEARNING TASKS AND ASSESSMENT: SummaryIt is emphasised that this course requires a significant commitment outside of formal class contact. The learning tasks in this course may include classes (lectures, tutorials or seminars), required reading, the preparation of answers to set questions, exercises and problems, and self-study. In addition, students may be required to complete an assignment, test or examination.

Summary of suggested time allocations for this course

Classes 3 hours per week for 12 weeks 36 hoursReading 2 hours per week for 12 weeks 24 hoursPreparation of set questions, exercises and problems

4 hours per week for 12weeks 48 hours

Preparation of assignment 20 hoursStudy and revision for test and end of semester examination

22hours

TOTAL 150 hours

Attendance and ParticipationIt is in students’ interest to make every effort to attend all the classes for this course and to complete all preparatory and assessment tasks. It is our experience that those students who do not attend class or carry out the associated activities are more likely to do poorly or to fail the course completely.

Learning Task Assessment Weighting Week DueResearch and preparation In class test 20 % Week 6

Completion of an individual

assignment

Written assignment 30 % Week 9

Research and preparation Examination 50 % End of Semester



Note on Assessment

The University of Ballarat PASS grade is achieved at 50%. To pass the courses listed below student must achieve this and pass the examination (if applicable). All other courses must achieve a pass overall.BUACC1506, BUACC1507, BUACC1521, BUEBU1501, BUECO1507, BUECO1508, BUENT1531, BUHRM1501, BULAW1502, BULAW1503, BUMGT1501, BUMKT1501, BUTSM1501, BUTSM1502, BUACC5901, BUACC5930, BUACC5932, BUACC5933, BUACC5934, BUACC5935, BUACC5936, BUACC5936, BUECO5903, BUHRM5912, BULAW5911, BULAW5914, BULAW5915, BULAW5916, BUMGT5921, BUMGT5926, BUMKT5901, BUMKT5922.

Students are strongly advised to attempt ALL assessment tasks. Students who do not submit a task(s) or fail a task(s) in the semester will be identified as a ‘student at risk’ of unsatisfactory academic progress (outlined in the Business School Handbooks) and will be directed to the School’s Intervention Program. Students who encounter difficulties or who are otherwise concerned regarding their progress should consult their lecturer.

Assessment criteria set out the details by which performance in each task will be judged. This information will give a clear and explicit understanding of the expected standards to be achieved relative to the marks awarded.

Assessment details and criteria

TestDetails for the test are as follows:

The test will be held in week six (6) of the semester during normal class (lecture) time Subject matter covered in Chapters 1,9,10 and 12 from the prescribed textbook (refer to

attached schedule) will be eligible for inclusion on the test. The test will be of one hour duration and comprise short answer questions which may

require calculations .No reference material may be accessed during the test. A formula sheet will be provided. Calculators without significant text storage capacity will be permitted to be used (see note below). As well as contributing to overall assessment in the course, it is the purpose of the class test to provide students with some interim feedback on their progress in the course.

The criteria to be applied in grading test papers will be accuracy of submitted answers and demonstrated understanding of the subject matter covered in the course.

Individual Assignment

Topic: Equity Markets

According to the efficient market hypothesis, share prices are the outcome of the judgements of well informed rational agents who fully and immediately incorporate all publicly available information into their judgements at all times. Thus superior performance cannot exist in these markets and thus they display many characteristics of perfectly competitive markets.However critics of this theory argue that it is contrary to much empirical and anecedotal evidence and thus superior performance can exist in sharemarkets.



You are required to:(a) Explain what is meant by the efficient market hypothesis(b) If the sharemarket is inefficient, explain the various sources of imperfection and thus the opportunities for superior performance.

Students should note that this assignment must be an individual piece of work. That is , the work must be the creation of the person submitting it.

Assessment weight; This assignment contributes 30 percent of the total assessment of this course.

Length: 2,000 to 2,500 words. Over length assignments will be penalised. Appendices should only be used where appropriate and not to circumvent the word limit.

Due Date: Week 9

Late Penalty; Will be applied for late assignments

Abstract/Synopsis: An abstract or synopsis of up to 50 words is required.

Reference Style; APA

The purpose of the assignment is to enable the student to: Undertake independent research of a topic Analyse the elements of a topic Communicate the findings of a formal piece of work and meet a deadline Enhance students’ written communication skills

Things that are unacceptable

Please ensure that you read the above guidelines and adhere to them. The task is clearly addressing the requirement for you to gain a scholarly understanding of issues relating to equity markets.

You cannot gain a scholarly understanding if you do not read quality materials. It is not appropriate to use questionable internet sources -you must access peer

reviewed journal articles and credible sources of information. All UB students (including students enrolled at off-shore institutions) have access to UB library resources; make sure that you use them.



End of semester examinationDetails for the examination are as follows:

The examination will be of three hours duration. No reference material may be taken into the examination venue. A formula sheet will be

provided. Calculators without significant text storage capacity will be permitted to be used (see note below)

All material covered during the semester will be considered examinable. This will encompass material covered in classes, set questions, exercises and problems and the required reading.

The purpose of this assessment task will be to assess in a comprehensive manner, the extent to which students have achieved the objectives specified for the course.

The criteria to be applied in grading examination papers will be the accuracy of submitted answers and demonstrated understanding of the subject matter covered in the course.

CalculatorsCalculators will be useful in studying this course and students should bring one to classes, the test , and the examination.

As indicated above, there are restrictions on the type of calculator that students may use during the test and examination. Calculators such as the Sharp EL-735 Financial Calculator (which has the capacity to store 560 alpha characters) are permitted. Calculators with a capacity to store more than 560 alpha characters are not permitted under any circumstances .Claims that the memory has been cleared or that a student was unaware of a calculator’s storage capacity will not be accepted as excuses for students having in their possession during the test or examination, calculators with a capacity to store more than 560 characters. The easiest way to check whether your calculator is acceptable is to look at the key pad.Does it have the full alphabet of letters a,b,c,d,e,f,etc.on or above the keys? If the answer is ”no” then your calculator is acceptable as text cannot be entered or stored. If the answer is “yes” then it is likely that your calculator has the capacity to store text and it not to be used unless you are certain that the storage capacity does not exceed 560 characters. Calculators that are not acceptable for use in the test and examination include (but not limited to) the following:

Calculators contained within electronic communication devices (such as mobile telephones).

Calculators contained within electronic address books or electronic diaries. All palm computing devices. All pocket- PC devices. The following models of Texas instruments calculators:TI-73,TI-83, TI-83 Plus, Voyage 200

Personal Learning Tool, TI-92, TI-92 Plus,TI-89, TI-81, TI-82 and TI-86. The following models of Casio calculators: ALGEFX2.OPLS,FX7400GPLUS, andGFX-

9850GBPLUS. The following models of HP calculators: HP48gx, HP48g Plus, HP38g,HP49g and HP39g



5 SCHEDULE:

As semesters and contact hours vary between UB locations, delivery is usually scheduled across three hours a week for 12 weeks ( for this delivery it will for eight weeks, four hours per week). As the University offers many programs in a variety of formats please contact local lecturers for further information about the schedule.

Please note that the sequence and content of lectures and tutorials may need to be changed and the following information should be used as a guide.

. Week 1Topic: A modern financial system: an overviewReading: Viney (2009) Chapter 1Tutorial: No tutorial

Week 2Topic: Money markets Reading: Viney (2009) Chapter 9,12Tutorial: Viney (2009)Chapter 1 “Essay” questions 3,6,7,8,9

Week 3Topic: Bond (or debt) marketsReading: Viney (2009) Chapter 10, 12Tutorial: Viney (2009)Chapter 9 “Essay” questions 2,3,4,6,7,10,12

Week 4Topic: Stock or equity marketsReading: Viney (2009 ) Chapter 4,5,6.Tutorial: Viney (2009 Chapter 10 “Essay” questions 4,5,6,7,9,13,14,15

Week 5Topic: Stock or equity markets continuedReading: Viney (2009 ) Chapter 4,5,6Tutorial: Viney (2009 Chapters 4 “Essay” questions 3,5,7,9,11,12,14

Week 6Topic: Stock or equity markets continuedReading: Viney (2009 Chapters 6 ,7Tutorial: Viney (2009 Chapter 5 “Essay” questions 2,3,8,0,11,13,14

Week 7Topic: Foreign exchange markets Reading: Viney (2009 Chapters 15, 16Tutorial: Viney (2009 Chapter 6 “Essay” questions 2,3,6,7,11,12,13,14..Chapter 7 ‘Essay” questions 5,7



Week 8Topic: Foreign exchange markets continuedReading: Viney (2009 Chapter 16,17Tutorial: Viney (2009) Chapter 15 “Essay” questions 8,9,10,11,12 Chapter 16 “Essay” questions 2,5,6,8,10

Week 9Topic: An introduction to risk management and derivativesReading: Viney (2009 Chapter 18,19 Tutorial: Viney (2009) Chapter 17 “Essay” questions 9,12,13,14

Week 10Topic: Derivatives: Options marketsReading: Viney (2009 Chapter 20Tutorial: Viney (2009) Chapter 19 “Essay” questions 10, 11,13, 14

Week 11Topic: Derivatives markets: Interest rate swaps and currency swaps

Reading: Viney (2009 Chapter 21Tutorial: Viney (2009) Chapter 20 “Essay questions 1,3,4,5,6

Week 12Topic: Revision of course

Tutorial: Viney (2009) Chapter 21 “Essay questions 1, 3, 4

Official examination period –end of semester

.



6 ADDITIONAL RESOURCES:

Additional useful references:

Beal, D., Goyen, M., Gibson, B and Shamsuddin, A. (2005) Introducing Corporate Finance. Milton, Qld. Australia: John Wily and Sons.

Bennetts, R. (2010). The Australian Stock-market (9th Ed). Sydney: Australian Broadcasting Corporation.

Hunt, B. and Terry, C. (2008) Financial Institutions and Markets (5th Ed.) Melbourne: Thomson.

Kidwell, D.S., Brimble, M., Beal, D and Willis, D. (2007) Financial Markets Institutions and Money . Milton, Qld. Australia: John Wiley and Sons.

Neal, P. (1997). The Wallis Inquiry: Financial Regulation and Systems Instability. Economic Papers, Vol. 16 No. 2 June, pp. 19-27.

Padley, M.(2009) Stock- market Secrets. Melbourne: Slattery Media

Ross, S.A., Thompson, S., Christensen, M., Westerfield, R.W. and Jordan, B.D. (2007) Fundamentals of Corporate Finance (4th Ed.). Sydney: McGraw Hill.

Roth, M. (2012) Top Stocks 2012. Milton: Wrightbooks

Steen, A. and Kendall, K. (2005). Introducing the Australian Stock-market. Brisbane: Wright Books.

Valentine,T. and Ford, G. (1999). Readings in Financial Institution Management. Sydney: Allen and Unwin.

Valentine, T., Ford, G., O’Hara, L., and Sundmacher, M. (2011) Fundamentals of Financial Markets and Institutions in Australia. Sydney: Pearson.

Students are also advised to read regularly “The Australian Financial Review” or other local/international business publications

Useful Web SitesCentral Banks

Bank Indonesia www.bi.go.id

Bank of Japan www.boj.or.jp

Bank Negara Malaysia www.bnm.gov.my


http://www.bnm.gov.my/


Bank of Thailand www. bot.or.th

Hong Kong Monetary Authority www.info.gov.hk/hkma

The Reserve Bank of Australia www . rba.gov.au

The People’s Bank of China www.pbc.gov.cn/english

Stock Exchanges

Australian Securities Exchange www.asx.com.au

Hong Kong Exchange www.hkex.com.hk

London Stock Exchange www.londonstockexchange.com

Nasdaq www.nasdaq.com

New York Stock Exchange www.nyse.com

Singapore Exchange www.sgx.com

Tokyo Stock Exchange www.tse.or.jp/english

Australian Banks

ANZ Banking Group www.anzbank.com.au

Commonwealth Bank of Australia www.commbank.com.au

National Australia Bank www.nab.com.au

Westpac Banking Corporation www.westpac.com.au

Finance Media

Australian Financial Review www.afr.com

The Financial Times www.ft.com/home/uk

Wall Street Journal http://online.wsj.com/public/us


BUECO6923 Course Description CUCST Semester 1 2012.Doc

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