Syllabus

FINANCIAL MARKETS AND INSTITUTION - A.Y. 2020/21 (English)

6 ECTS – 45 hours

Objectives

This course aims at explaining the functioning of financial markets and their economic role, with a focus on financial institutions and their products and services.

The course looks at global markets, mainly EU and US, with limited references to Italy as examples. Country comparisons aim at evidencing similarities and differences, and at underlining the role of international relationships.

Topics

FINANCIAL MARKETS:

FINANCIAL INSTITUTIONS:

TEXTBOOK

Mishkin F., Eakins S. (2018), Financial Markets and Institutions, 9th Edition, Pearson.

INTENDED LEARNING OUTCOMES

Knowledge/understanding:

- knowing why financial markets and institutions exist, how they function, are structured and organized

- knowing the constraints affecting the functioning of markets and institutions

- knowing the contractual features of leading financial products and services

- knowing similarities and differences of financial markets and institutions at the international level

Applying knowledge/understanding:

- describing the main features of financial markets and institutions

- describing the mechanics and distortions caused by information asymmetries and financial crisis

- evaluating financial products and services

- describing financial intermediation at the international dimension

Making judgments:

- evaluating differences in risk and return of the main financial instruments

- evaluating the performance of the main classes of financial intermediaries

- selecting markets and institutions consistently with the financial needs of families and firms

Communication skills:

- understanding and applying the technical language specific to financial markets and institutions

- expressing knowledge and opinions effectively on financial instruments, markets and institutions

Learning skills:

- autonomously research relevant data on financial instruments, markets and institutions

REQUIREMENTS

Preconditions (knowledge needed to successfully attend this course assumed already acquired by students):

Financial Mathematics, Macroeconomics.

Propedeuticities (courses that have to be passed before this course):

METHODS

Depending on circumstances, this course will be held in presence and/or through distance learning. Participation is a free choice, but strongly encouraged.

Physical presence takes place through traditional front lectures, encouraging the active participation of students, the discussion of market data or real-life cases, the development of exercises, simulations, and role-playing. Usually, a few seminars held by other lecturers or professionals of financial markets are organized during the course. Traditional classes will be also available online through MS-Teams in real time, as long as the pandemic emergency requires it.

The distance learning alternative involves a range of teaching tools: video lectures, webinars, and additional online activities. The latter are exercises, surveys, simulations and tests offered through online digital platforms, both during classes (we will use Mentimeter) or outside classes (we will use Google Forms).

The distinction between attending and non-attending students will be based on the participation to additional online activities. Their short description and deadlines are included in the workplan below. Students will be considered “attending” if they actively participated to at least 80% of additional online activities (8 out of 10). Results will not impact the final grade, but will affect how the exam will take place (see below).

OTHER INFORMATION

Students are advised to check regularly the teaching materials and the information provided on Moodle.

EXAM AND GRADING

Grading is based on a final oral exam (15-30 minutes, depending on each student’s preparation). If the situation requires it, the oral exam will take place through MS-Teams.

The exam consists of three questions:

1. topic chosen by the student

2. topic chosen by the lecturer, on an insight on the same topic or on a different topic (for non-attending students only)

3. one insight consisting in a comment to financial news, an exercise, a critical remark on links across topics of this course.

Grading scale:

- failure: basic concepts are not understood in full or are incoherent, no proficiency in basic technical language

- range 18-21: basic concepts are sufficiently understood, the basic technical language is used with proficiency, ability to  solve simple numerical exercises

- range 22-25: good understanding of basic concepts and sufficient understanding of more advanced topics, good proficiency in basic technical language and sufficient proficiency in advanced terminology, ability to solve simple exercises, sufficient ability to link different topics of this course and to comment financial news

- range 26-28: great understanding of basic concepts and good understanding of advanced topics, great proficiency in basic technical language and good proficiency in advanced terminology, ability to solve complex numerical exercises, good ability to link different topics of this course and to interpret financial news

- range 29-30 with honors: great understanding of basic and advanced topics, great proficiency in basic and advanced technical language, ability to solve complex numerical exercises, great ability to link different topics of this course and to interpret financial news.

GRADING GRID