Download Stock Markets

София 1700, Студентски град “Христо Ботев”,
Approved by:
Adopted by a decision issued by the Faculty
Council of „International Economics and
Politics”
Protocol № /
Dean
Prof. A.Vassileva, PhD
CURRICULUM
Academic subject:
STOCK MARKETS
В60000
O0658
Subject code:
Degree of Education and
Qualification:
Status of the course:
Field of Higher Education:
Academic Area:
Specialty:
Faculty:
Department:
Total student academic load
(average classes per course):
Non-contact student academic
load:
Credits:
Lecturer of the course:
3.
3.8.
3.8.30.
Bachelor of Arts
Optional
Social Sciences, Economics and
Law
Bachelor of Economics
International Economic Relations
International Economics and Politics
International Economic Relations
and Business
30 / 0
70
4
Associate Professor Svetlana
Aleksandrova , PhD
Идентификация на статуса: ОДНК_7.1.3-3/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
PREREQUISITES
The course “Stock markets” is included in specialized module “International Finance”
Department International Economic Relation and Business. The course develops
knowledge for stock market organization, regulations and supervision of the stock
market, trade of securities trade. This course will require you to have previous
knowledge in basic finance, macroeconomics, financial management, International
business.
ANNOTATION
1. Course “Stock markets” taught by academic 1999/2000 to students of
International Economic Relations Bachelor degree.
2. Description of the course content :
A well-functioning financial system is a basic necessity for a well-functioning economy.
The goal of this course is o provide an introduction into stock market trade and to
analyze the role of securities trade for the broader macroeconomy. This course will be
to help students obtain a better understanding of important financial issues and to aid
understanding, financial tools, the types of financial assets and how they are traded, the
various roles of key financial market participants, including the role of investment banks,
individual participants and financial policy.
The course starts with stock market description – legislation, supervision rules and
trade. The course delves into different types of investments- stocks, bonds, and mutual
funds. You'll learn how each one works, how to choose good ones and when to sell
them and how to balance and diversify your portfolio. Topics include the determination
of asset prices; the risk and term structure of interest rates; the efficient markets
hypothesis; risk management and financial derivatives, asymmetric information models
of financial market structure, innovation, regulation and deregulation; and financial
crises. Finally, we will employ these insights to discuss issues of broader relevance for
the macro economy, with special emphasis on the current financial crisis.
3. Language of instruction: English
Идентификация на статуса: ОДНК_7.1.3.-3/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
2
CONTENT OF THE CURRICULUM
LECTURES
№
Topics
Hours
1.
Financial markets. Role of the Financial System. Financial liberalization and
stock market development.
Organization of stock market. Participants. Legislation and rules,
supervision
Structure and organization of the stock market. Security Trading. Over-thecounter (OTC) market Primary and secondary market. IPO and Financial
intermediaries. Investment Bankers and Underwriting underwriters. Stock
market listings. Types of order. Collective investment schemes. Institutional
investors . Mutual Fund Performance, open and closed funds.
Margin and Short sales. Trade specific. Legislation and rules
The money market. Treasury bills. Certificate of deposit, commercial paper;
repurchase agreements. Yields on Money Market Instruments
2
Interest rate structure. Risk in Financial Markets. Dealing with Risk.
Diversification. The Measurement of Risk. Expected Return Beta
Relationship.
2
Part 1:
2
3.
3.
4.
5.
6. Market Efficiency. Versions of the Efficient Market Hypothesis. Market
2
4
2
2
2
anomalies Random walks and the efficient market hypothesis . Technical
Analysis Fundamental analysis;
Part 2:
7.
8.
9.
10.
11
12.
General Characteristics of Securities. Equity securities. Security analysis.
The Price–Earnings Ratio and Growth Opportunities. Forecasting the Stock
Market.
Characteristics of debt instruments, bond characteristics. Bond and other
fixed income securities floating-rate securities. Maturity. Principles of
leverage bond prices and yields. Securitization. Mortgages and mortgagebacked securities
2
Hybrid Financial instruments. Convertible Securities .Warrant,
Depositary receipt.
2
The Basics of Futures Contracts. Future market. Basis Risk. The
determination of futures prices. The Spot-Futures Parity Theorem. the
relationship between futures prices and the current spot price.- Normal
Backwardation; Contango. Modern Portfolio Theory. Index futures. Risk
management and futures.
The option contract. Options trading. Index options. Futures options.
Interest rate options. Values of options. The put-call parity relationship.
Option valuation- intrinsic and time values. Determinants of option values
4
Origins of the Financial Crisis. Crises and Systemic Risk. Effects of the
Crisis on Banks. Effects on the Broader Economy
2
Идентификация на статуса: ОДНК_7.1.3.-3/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
2
2
3
METHOD/ TEACHING STRATEGY :


lectures presentations,
Each student will receive handouts for class –discussion referent to the subject.
Individual assignment
Case Study: Global Stock Market Crash
Case Study: Stock market performance before and after credit crunch.
GRADES
Homework assignments– 30%
Class Participation 10%
Final exam -60%
The final mark is based on the six-scale system, the minimal mark for passing the exam
is Satisfactory (3). The correspondence with the European credit transfer system is as
follows:
Excellent /6/
Very good /5/
Good /4/
A
B
C
Satisfactory /3/
D
Credits are awarded as provided for in the plan
Poor /2/
E
FX
F
No credits awarded
RESULTS OF TRAINING
The training provides following knowledge:
Students will come to appreciate the richness and complexity of the financial market.
Students will learn to assess the importance, risk and viability of various types of
financial institutions and markets.
 What is an organized market?
 Securities trade
 Organization, regulations and rules of the stock market;
 Summarize bond and other fixed income securities information.
 Describe the pros and cons of investing in mutual funds.
 Globalization and integration of the financial markets;,
 Securitization of the financial markets;
Идентификация на статуса: ОДНК_7.1.3.-3/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
4
The training provides following skills:
When you have completed successfully this course, you should be able to do following:






to understand the stock market development;
to understand stock market index and analysis the stock market dynamic;
to understand regulatory requirements regarding entering into the financial markets;
to identify and analyze factors which impact financial market stability
to analyze factors impact on the stock market
to know how to build portfolio
COURSE DISTRIBUTION
1. University of Economics, Prague (Vysoká škola ekonomická v Praze
2. University of Frankfurt
3. The University of Leads (UK)
TOTAL STUDENT ACADEMIC LOAD
Type of classes/academic load
1. Lectures
2. Seminars
3. Laboratory training
4. Practical training
5. Term paper
6. Final thesis
7. Individual assignment
8. Interim exam/test
9. On-going assessment
10. Exam
Overall
student
academic
load
30
Total
written
30
Student
academic
load,
average
classes per
week
2
2
Student
non-contact
academic
load
Total
45
75
20
20
5
70
5
100
RECOMMENDED READING
А. Basic
Lectures and presentations
L Frank J. Fabozzi and Franco Modigliani, Capital Markets: Institutions and
Instruments, 4rd edition, Prentice Hall, Inc., 2009
Идентификация на статуса: ОДНК_7.1.3.-3/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
5
B. Additional
Jeff Madura (2008) Financial Markets and Institutions,, South-Westren College
Publishing
Christina Ray (1993) The Bond Market,, Trading and Risk Management„Richard Irwin
USA
George Soros The New Paradigm for Financial Markets-2008
Frank j. Fabozzi The global money market , John Wiley & Sons, Inc., 2002
Financial Мarkets Рegulation Financial Crisis Highlights Need to Improve Oversight of
Leverage at Financial Institutions and across System
Peter Lynch One Up On Wall Street 2004.
PREPARED BY:
( Assoc. Professor Svetlana Aleksandrova, PhD )
HEAD OF DEPARTMENT:
( Assoc.Professor Ivan Stoychev, PhD )
DEAN OF THE FACULTY:
( Professor Antoaneta Vassileva, PhD )
Идентификация на статуса: ОДНК_7.1.3.-3/ Версия 01/Изменение ____/____________; стр. __/__
Ниво на достъп:
□ общодостъпен □ за служебно ползване □поверителен □секретен
6