EC247-5-SP-CO:
Financial Instruments and Capital Markets
2016/17
Economics
Colchester Campus
Spring
Undergraduate: Level 5
Current
15
28 May 2013
Requisites for this module
IA151 or EC111 or IA153
(none)
(none)
(none)
(none)
BA 5A84 Financial Economics (Including Placement Year),
BA L111 Financial Economics,
BA L118 Financial Economics (Including Foundation Year),
BA L195 Financial Economics (Including Year Abroad),
BSC 0Q64 Financial Economics (Including Placement Year),
BSC L114 Financial Economics,
BSC L117 Financial Economics (Including Foundation Year),
BSC L194 Financial Economics (Including Year Abroad),
BA L148 Financial Economics and Accounting,
BA L149 Financial Economics and Accounting (Including Year Abroad)
The past three decades have witnessed unprecedented growth in financial and capital markets and the variety of financial instruments that can be traded in these markets. The objective of this module is to give an overview of these developments by introducing basic elements in modern finance and providing a theoretical and empirical understanding of the functioning of financial markets. The module holds up financial market theory against empirical and experimental evidence on market and agent behaviour in order to critically assess the theory and propose new approaches to understanding financial markets.
The module starts with an overview of the activities of financial institutions. This is followed by a study of the main financial markets: the money market, bond market, equity market and various derivatives markets. In relation to each market the module discusses institutional aspects such as market making and trading on centralised exchanges, and valuation. Once a clear understanding of the markets and their environment is established the module moves on to empirical findings, experimental evidence and recent experience, especially in the context of the 2007-08 financial crisis. Specific topics to be discussed include, but are not limited to, how financial market prices reflect insider information, whether financial markets provide appropriate incentives for traders and other agents such as investment funds to become informed about the assets that are traded, under what conditions we could expect "bubbles" to form, or whether we can use simple financial markets as tools to predict non-financial events such as election outcomes.
The module provides students with the following employability skills. Academic skills are enhanced through essay-writing, mathematical problem-solving and the use of ICT equipment. Students are encouraged to carry out research and information gathering for term papers and as background reading. External awareness is promoted through discussion of real world issues and learning about financial institutions and regulation. Opportunities to develop professional working skills, including teamwork and presentation skills, are provided through class discussions. The module provides familiarity not only with theory, but also with empirical and experimental evidence, broadening the experience of students with a wide set of economic tools and the way they can be used together to obtain insights about underlying economic behaviour.
No information available.
No information available.
Compulsory for:
Year 2 students on BA in Financial Economics and BSc in Financial Economics.
One two-hour lecture per week in one term.
Assessment items, weightings and deadlines
| Coursework / exam |
Description |
Deadline |
Coursework weighting |
| Coursework |
Assignment 1 |
|
|
| Exam |
Main exam: 120 minutes during Summer (Main Period)
|
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Overall assessment
Reassessment
Module supervisor and teaching staff
Dr Christoph Siemroth
For further information, send an email message to ueco@essex.ac.uk.
Yes
Yes
No
No external examiner information available for this module.
Available via Moodle
Of 31 hours, 29 (93.5%) hours available to students:
2 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
Economics
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