|
|
|
|
|
|
|
|
|
|
|
|
|
BA 441 – Financial Institutions
Professor Raymond M. Brooks
430 Bexell Hall, 541-737-3692
LEARNING OUTCOMES
Specific Learning Outcomes
1.
Students will be
able to explain the functions of the major financial markets including the
banking system, equity markets, bond markets, mortgage markets, currency
markets and derivatives markets.
2.
Students will be
able to evaluate the role and scope of agents in each of the financial markets
or institutions.
3.
Students will be
able to contrast the
4.
Students will be
able to explain various financial assets in each of the financial markets and
the institutional structure on how they are bought and sold.
5.
Students will be
able to explain, evaluate and critique the role of government in regulating
financial markets and institutions.
COURSE OBJECTIVES
The objective of the course is to introduce students to
institutions and markets that form the economic system of trading financial and
real assets. The course will
introduce concepts of financial theory, institutional detail, regulations, and
the history of the financial markets. Students will be introduced to legal,
ethical, technological, global issues facing financial managers, financial
markets, and the financial assets traded in these markets. The course is
designed to provide an overview of the financial world, the financial assets
that are traded, and the agents that participate in the financial markets.
Course Hours: Monday - Wednesday, 8:00 a.m. to 9:50 a.m.
Office Hours: Tuesday,
3 – 4 p.m., Thursday 1 – 2 p.m. & Friday 10 – 11 a.m.
Others
by appointment (please call for appointment)
Required Text: Fabozzi,
Modigliani, Jones and Ferri, Foundations of Financial Markets and
Institutions, Prentice Hall, Third Edition, 2001
Grading: You
will prepare a research paper on a specific topic assigned during the first
class. The paper will be an extension of the material from the text and provide
insight into the specific topic. Later in the term when your topic matches the
discussion material for the class you will make a team presentation of your
topic. The paper and presentation are worth 20% of your grade each or a total
of 40% of the course grade. The remaining 60% of your grade is the first exam
(20%) and the final examination (40%).
Class Attendance: I expect students to be on time and present for every class. Good study habits and efficient management of time will translate into good work habits and responsible employees.
Class Preparation: Students
should read the assigned chapter and look over the end of chapter questions.
ACADEMIC HONESTY: For information about
academic integrity and the University's policies and procedures in this area,
please refer to the Student Conduct web site at: http://www.orst.edu/admin/stucon/achon.htm
and the section on Academic Regulations in the OSU Schedule of Classes.
STUDENTS WITH
DISABILITIES: Accommodations are
collaborative efforts between students, faculty and Services for Students with
Disabilities (SSD). Students with accommodations approved through SSD are
responsible for contacting the faculty member in charge of the course prior to
or during the first week of the term to discuss accommodations. Students who
believe they are eligible for accommodations but who have not yet obtained
approval through SSD should contact SSD immediately at 737-4098.
BA 441 – Financial Markets and Institutions
Monday - Wednesday – Bexell 103
Class Time 8:00 – 9:50 a.m.
Spring 2009
Course Outline General Topics and
|
Date |
Topic |
Reading Assignment |
Paper Assignment |
Questions Problems |
|
Week 1 Mar 30th |
Financial
Intermediaries |
Sign up for Paper
and Topic Discussion |
Chapter 1: 7, 10
and 11 Chapter 2: 7, 8,
and 10 |
|
|
Week 2 Apr 6th |
Role of Government
and Depository Institutions |
|
Chapter 3: 2, 3,
and 5 Chapter 4: 6 and 9 |
|
|
Week 3 Apr 13th |
Central Banks and
Monetary Policy |
Papers Due Two
Weeks before Presentation |
Chapter 5: 6 and
11 Chapter 6: 1 and 2 |
|
|
Week 4 Apr 20th |
Insurance Exam 1 Wed Apr 22nd |
|
Chapter 7: 8 |
|
|
Week 5 Apr 27th |
Common Stock
Markets and International Equity Markets |
Presentations |
Chapter 18: 11,
17, and 25 Chapter 19: 3, 5
(a and b only) and 14 |
|
|
Week 6 May 4th |
Treasury and
Municipal Markets |
Presentations |
Chapter 16: 4, 6,
and 17 Chapter 17: 6 and
12 |
|
|
Week 7 May 11th |
Corporate Bonds
and Bond Dealers |
Presentations |
Chapter 20: 3 and
9 Chapter 21: 2 and
5 |
|
|
Week 8 May 18th |
Mortgage Markets |
Presentations |
Chapter 23: 6 and
12 Chapter 24: 2 and
9 |
|
|
Week 9 May 25th |
Memorial Day & Futures Markets, |
|
Presentations |
Chapter 26: 3, 5,
11 and 14 |
|
Week 10 Jun 1st |
Options Markets, Currency Markets |
Presentations |
Chapter 27: 3, 8,
9, and 15 Chapter 31: 3, 6
and 10 |
|
|
Jun 9th |
Final
Exam |
Tuesday |
6:00 p.m. |
Bexell 103 |
Presentation Score Card
0 to 10 points in each Category
- Content of Subject ( The depth of knowledge and coverage of the subject)
- Use of Visual Aids (PowerPoint, Graphs, Charts, Exercises, etc.)
- Communication with the Audience (Appropriate language, projection, eye-contact, etc.)
- Introduction and Summary of Subject (Concise and clear opening, concise and effective summary)
- Questions and Answers (Response to Audience Questions)
Written Paper Score Card
0 to 5 points in each Category
- Within Guidelines for Written Presentation (12 point Font, Double Spaced, 6 to 8 pages)
- Grammar and Sentence Structure (Paper has been edited by author and is consistent in tense and person)
- Clear and Concise sentences (Paper is written for a business audience)
- Content of Paper (Paper covers the essential parts of the topic)
- Introduction (Clearly states the subject, scope of the paper, and the theme)
- Body of the Paper (Organized to flow effectively from one paragraph to the next, one subject to the next)
- Summary of the Paper (Concise but articulate summary that covers the main points of the paper or the main conclusions)
- When appropriate, Tables, Charts, Graphs, or other visual aids are effectively used in paper.
- References
- Overall effectiveness of the paper on the subject.
TOPICS and presentation schedules…
Week Five Presentations – Equity and International Equity Markets
Papers Due April 17, 2009
1. Mapping a Trade at NYSE or NASDAQ – Changes through Time
2. The Fourth Market – Electronic Communications Networks
3. European and Asian Markets
4. Global Depository Receipts (GDRs, IDRs, ADRs)
Week Six Presentations – Treasury and Municipal Bond Markets
Papers Due April 24, 2009
1. Treasury Auctions and the Secondary Treasury Markets
2. STRIPS and TIPS
3. Municipal Bond Types and Characteristics
4.
Defaults on Municipal Bonds (
Week Seven Presentations – Corporate Borrowing
Papers Due May 1, 2009
1. Commercial Paper
2. Bond Ratings and Agencies
3. High Yield Bonds (Junk Bonds) and Their History
4. Bankruptcy – Procedures and Outcomes
Week Eight Presentations – Mortgage Markets
Papers Due May 8, 2009
1. Home Mortgages: Process, Qualifications, and Payments
2. Mortgage Designs: Fixed, Adjustable, Balloon, and Others
3. Creating the National Mortgage Market: Players and History
Week Nine Presentations – Futures and Options
Papers Due May 15, 2009
1. Getting In and Out of Future Contracts
2. Governing the Futures Markets
Week Ten Presentations – Swaps and Currency Markets
Papers Due May 23, 2009
1. Brief History of Options Trading
2. International Developments in Futures and Options
3. Euro: It’s History and Future
4. Exchange Rates and Arbitrage
References for Papers
BA 441
References should appear at the end of the paper on a separate sheet.
For Journal articles with single author:
Angel, James J., 1997, Tick Size, Share Price, and Stock Splits, Journal of Finance 52, 655-681.
For Journal articles with multiple authors:
Brooks, Raymond M., and Shur-Nuaan Chiou, 1995, A Bias in Closing Prices: The Case of the When-Issued Anomaly, Journal of Financial and Quantitative Analysis, 30, 441-454.
For Books:
Fama, Eugene F. and Merton Miller, 1972, The Theory of Finance (Dryden Press,
For Contributions in collective works:
Grossman, Sanford J. and Oliver D. Hart, 1982, Corporate
Financial Structure and Managerial Incentives, in John J. McCall, ed.: The Economics of Information and Uncertainty
(
For Internet Citations with author:
Kinnel, Russel,
For Internet Citations from a sponsored site:
Wikipedia, 5/18/1984, Bid-offer spread, http://en.wikipedia.org/Bid-ask_spread.
For Internet Citations without author or sponsor:
For Newspaper Citations:
Cohen, Lorrie,
Generic Citation:
Author (last name, first name), date of publication (year for books and journals, date for magazines, newspaper, and web sites), title of article or book, and publisher (name and location of publisher for a book, journal name, magazine name, newspaper, or web site).
EXAMPLE: Road Show
|
Topic |
Researcher #1 |
Researcher #2 |
Presentation |
|
Adam Mobley |
Brock Werner |
April
27, 2009 |
|
|
The
Fourth Market – Electronic Communications Networks |
No Sign ups |
|
April
27, 2009 |
|
Blayne Paulsen |
Ryan Good |
April 29, 2009 |
|
|
Global
Depository Receipts (GDRs, ADRs, and IDRs) |
Jaclyn Ng |
Nate Bickely |
April
29, 2009 |
|
Treasury
Auctions and Secondary Treasury Auctions |
Justin O’Donnell |
|
May
4, 2009 |
|
Josh Robertson |
Ryan Webb |
May 4, 2009 |
|
|
Municipal
Bond Types and Characteristics |
Derek Reid |
Tara Tokura-Ellsworth |
May
6, 2009 |
|
Eric Thammavong |
Natalie Hooper |
May
6, 2009 |
|
|
Meng Vue |
Matt Sieverson |
May
11, 2009 |
|
|
Mark Grbavac |
Thomas Mitchell |
May 11, 2009 |
|
|
High
Yield Bonds (Junk Bonds) and Their History |
Kevin Thorpe |
Hillary Seiler |
May
13, 2009 |
|
Bankruptcy
– Procedures and Outcomes |
Kara Brausen |
Ken Bakondi |
May 13, 2009 |
|
Xiaodan (Stephy) Ma |
Khammy Wahaus |
May
18, 2009 |
|
|
Mortgage Designs –Fixed, Adjustable, Balloon, and Others |
Jordan Briscoe |
Logan Dunn |
May
18, 2009 |
|
Creating
the National Mortgage Market: Players and History |
Ahleeya Vang |
Brooke Maxwell |
May
20, 2009 |
|
Gregg Peat |
Richard (Alex) Hehshaw |
May
27, 2009 |
|
|
Ian McCormick |
David Silverstone |
May
27, 2009 |
|
|
Brief
History of Options Trading |
Mark Rosales |
Jun Ho Lee |
June 1, 2009 |
|
International Developments in Futures and Options |
Maria Brambila |
McLayne Bertsch |
June 1, 2009 |
|
Joe Griner |
Joel Graham |
June 3, 2009 |
|
|
Lacey Rushton |
Ben Bullock |
June
3, 2009 |
|