NOTE: BA 543 is not offered during Summer 2008.
These course materials are for reference purposes only.

BA 543: Financial Markets and Institutions

Spring 2008

Syllabus

Instructor: Bob Johnson Prerequisite: BA340 – Finance, or equivalent

Phone: 737-6044 Class Schedule: Wed: 1200 or 1800 (Bexell 415)

Office: Bexell 339 Office Hours: T – 3:00, W – 10:00, R – 2:00

E-mail: johnsonr@bus.oregonstate.edu and by appointment

About This Course:

The objective of the course is to introduce students to the institutions and markets that form the worldwide economic system of trading financial and real assets. The course will cover concepts of financial theory, institutional detail, regulations, and the history of the financial markets. Students will be exposed to legal, ethical, technological, and 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 “cast of characters” that participate in the financial markets.

Instructional Approach:

The course will be a blend of current theories and practices. A variety of instructional methods will be used, including lecture, discussion, problem solving, and student presentations. We will vary the proceedings and take one or two breaks in each class meeting. Topics will be related to current business practices and current events whenever possible. When current events of significance to the course arise, we will devote class time to these topics – often in the form of debating the merits of the topic in the news. If I miss a current event that you discover, please share it with the rest of the class.

Text:

Fabozzi, Modigliani, Jones and Ferri, Foundations of Financial Markets and Institutions, Prentice Hall, Third Edition, 2001

Evaluation: Percentage of Course Grade

Research Paper 25%

Presentation on Research Paper 25%

Class Participation 5%

Final Examination 45%

Total 100%

End-of-Chapter Questions from the text are called out in the class schedule that follows. Each student is expected to complete the reading assignment and answer the Questions prior to the class meeting for that topic. The assigned Questions will be covered in class, as time permits, but will written answers will not be collected. . Course presentation materials will be distributed on Blackboard at least 24 hours prior to each class meeting. Please check the course Blackboard web page http://my.oregonstate.edu/ regularly for updates, announcements and new postings:

To save your having to search around the web site, I will post all material to the “Course Information” folder.

Each student will prepare a research paper on a specific topic assigned during the first class meeting. The paper will be an extension of the material from the text and provide insight into the topic beyond that which is provided in the text. Later in the term, when the student’s topic matches the discussion material for the class, s/he will make a presentation of the findings from the research paper. As noted above, the paper and presentation each are worth 25% of the course grade, or a total of 50%.

Extra/supplemental credit is not offered in this course. I strongly encourage you to ask questions in class. If something is puzzling you, there is a good chance that it is puzzling other members of the class also. I may call on students from time to time - not as a performance test, but just to check for overall understanding.

Attendance: While I don’t take roll, attendance at all class sessions is expected and necessary for success in the course. I will strive to make your attendance in class worthwhile for you. Virtually all exam questions will be drawn from material covered in class, including student presentations.

Instructor access: Your learning and success in the course are important to me. I will be available during the office hours listed above. Generally, I can meet with students on a “drop-in” basis, as well. If necessary, we can schedule another time to get together. Please see me, if you are having difficulty with any aspect of the course. Also keep in mind that office hours are not only a time to address problems. I’d be happy to talk with you about your areas of special interest, careers in Finance, etc. The best way to get in touch with me on weekends is by e-mail. I will check e-mail at least once per day on Fridays, Saturdays and Sundays.

Email communications: All students enrolled in business courses have a College of Business email address. These individual email addresses are combined into group distribution lists for each course. I will use the group distribution lists to communicate with the class by email, including forwarding news articles of interest that may be used for class discussions. Please ensure that either you check your College of Business email address regularly or set up a forwarding rule to the email account that you use most often.

Statement Regarding 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."

Link to Statement of Expectations for Student Conduct:
http://oregonstate.edu/admin/stucon/achon.htm

Spring 2008

Course Outline, General Topics and Reading

Date	Topic	Reading Assignment	Paper Assignment	Questions
April 2, 2008	Financial Intermediaries and Role of Government	Chapters 2, 3, 7, 8 and 9 (just skim chapters 7, 8 and 9)	Example Paper and Presentation Sign up for Paper	Chapter 2: 7, 8, and 10 Chapter 3: 2, 3, and 5 Chapter 7: 3 and 7 Chapter 8: 13 Chapter 9: 8
April 9, 2008	Research Time/ Faculty Contact	Class does not meet	Research
April 16, 2008	Research Time/ Faculty Contact	Class does not meet	Research
April 23, 2008	Banks, Central Banks and Monetary Policy	Chapters 4, 5 and 6	Research Paper Due – Presentations	Chapter 4: 6 and 9 Chapter 5: 6 and 11 Chapter 6: 1 and 2
April 30, 2008	Common Stock Markets and International Equity Markets	Chapters 18 and 19	Presentations	Chapter 18: 11, 17, and 25 Chapter 19: 3, 5 (a and b only) and 14
May 7, 2008	Treasury and Municipal Markets	Chapters 16 and 17	Presentations	Chapter 16: 4, 6, and 17 Chapter 17: 6 and 12
May 14, 2008	Corporate Bonds and Bond Dealers	Chapters 20 and 21	Presentations	Chapter 20: 3 and 9 Chapter 21: 2 and 5
May 21, 2008	Mortgage Markets	Chapters 23 and 24	Presentations	Chapter 23: 6 and 12 Chapter 24: 2 and 9
May 28, 2008	Futures Markets, Options Markets And Applications	Chapters 26 and 27	Presentations	Chapter 26: 3, 5, 11 and 14 Chapter 27: 3, 8, 9, and 15
June 4, 2008	Swaps & Currency Markets	Chapters 30 and 31	Presentations	Chapter 30: 2 and 7 Chapter 31: 3, 6 and 10
June 11, 2008	FINAL EXAM

Presentation Requirements

• All electronic student presentation materials (e.g. PowerPoint, Excel, etc.) must be submitted by email to the instructor not later than 3 hours prior to the start of the class meeting in which the presentation is scheduled.
• Student presentations will be posted to Blackboard after the presentation, unless the presenter requests otherwise.
• Presentations will be strictly limited to 25 minutes in length, including question and answer time.

Presentation Scoring

0 to 5 points in each Category

1. Content of Subject ( The depth of knowledge and coverage of the subject)
2. Use of Visual Aids (PowerPoint, Graphs, Charts, Exercises, etc.)
3. Communication with the Audience (Appropriate language, projection, eye-contact, engagement of audience, etc.)
4. Introduction and Summary of Subject (Concise and clear opening, concise and effective summary)
5. Questions and Answers (Response to Audience Questions)

Note: In addition to faculty evaluation of presentations, students will complete assessments of each presentation.

Written Paper Scoring

0 to 5 points in each Category

1. Within Guidelines for Written Presentation (12 point Font, Double Spaced, 6 to 8 pages)
2. Grammar and Sentence Structure (Paper has been edited by author and is consistent in tense and person)
3. Clear and Concise sentences (Paper is written for a business audience)
4. Content of Paper (Paper covers the essential parts of the topic)
5. Introduction (Clearly states the subject, scope of the paper, and the theme)
6. Body of the Paper (Organized to flow effectively from one paragraph to the next, one subject to the next)
7. Summary of the Paper (Concise but articulate summary that covers the main points of the paper or the main conclusions)
8. When appropriate, Tables, Charts, Graphs, or other visual aids are effectively used in paper.
9. References
10. Overall effectiveness of the paper on the subject.

Note: Please do not place your papers into binders, folders, etc. A simple staple in the upper-left-hand corner is sufficient.