BA 543: Financial Markets and Institutions

Spring 2007

Syllabus

Instructor:          Bob Johnson                            Prerequisite:                  BA340 - Finance

Phone:              737-6044                                   Class Schedule:            Wed: 1200 or 1800 (Bexell415)

Office:               Bexell 339                                 Office Hours:                 T – 4:00, W – 3:00, R – 1:00

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

About This Course:

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 cover concepts of financial theory, institutional detail, regulations, and the history of the financial markets. Students will be exposed 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.

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.  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 materials will be distributed on Blackboard.  Please check the course Blackboard web page regularly for updates, announcements and new postings:

http://my.oregonstate.edu/

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

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 presentation of your paper. As noted above, the paper and presentation each are worth 25% of your grade, or a total of 50% of the course grade.

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.

Spring 2006

Course Outline, General Topics and Reading

Date	Topic	Reading Assignment	Paper Assignment	Questions
April 5, 2006	Financial Intermediaries and Role of Government	Chapters 2, 3, 7, 8 and 9 (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 12, 2006	Research Time/ Faculty Contact	Class does not meet	Research
April 19, 2006	Research Time/ Faculty Contact	Class does not meet	Research
April 26, 2005	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
May 3, 2006	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 10, 2006	Treasury and Municipal Markets	Chapters 16 and 17	Presentations	Chapter 16: 4, 6, and 17 Chapter 17: 6 and 12
May 17, 2006	Corporate Bonds and Bond Dealers	Chapters 20 and 21	Presentations	Chapter 20: 3 and 9 Chapter 21: 2 and 5
May 24, 2006	Mortgage Markets	Chapters 23 and 24	Presentations	Chapter 23: 6 and 12 Chapter 24: 2 and 9
May 31, 2006	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 7, 2005	Swaps & Currency Markets	Chapters 30 and 31	Presentations	Chapter 30: 2 and 7 Chapter 31: 3, 6 and 10
June 12, 2005, 6:00pm	FINAL EXAM

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.