| School | Business School | College | College of Arts, Humanities and Social Sciences | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit level (Normal year taken) | SCQF Level 8 (Year 1 Undergraduate) | Availability | Not available to visiting students | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCQF Credits | 20 | ECTS Credits | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary | The course is only open to students in the following degree programmes: Accounting & Finance Business & Finance Economics with Finance. The course aims to develop a student's understanding of the basic principles of finance. The course is a practical course and is designed to give a theoretical introduction to financial markets. The course looks at the way assets are valued in financial markets. It considers interest rates and the pricing of fixed-income bonds; stock market prices and returns; stock market risk and the influence of risk on the pricing of shares; and the characteristics and pricing of financial futures and options. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Course description | You have only to think back to the recent financial crisis to realize the impact financial markets have in today¿s world. But that is not the only reason it is important to understand how financial markets work. All decision making implicitly requires an assessment of risk, possible returns and the trade-off between them. In financial decision making these assessments comes to forefront and they are most explicit in pricing of assets traded in financial markets. This course aims to develop students understanding of the basic principles of financial markets and provides an introduction how assets are valued and traded in those markets. The course considers stock market prices and returns; stock market risk and the influence of risk on the pricing of shares. It also considers exchange rates, interest rates and the pricing of bonds; and the characteristics and pricing of financial futures and options. But the most important contribution of this course to your future career is how to use the latest academic insights to better assess risks and returns, and the trade off between the two in your future decision making. Scientific insights develop and change over time. Traditional views on financial markets are changing rapidly and many of the standard paradigms and theory are nowadays questioned. On the one hand because of recent developments like the recent financial crisis, on the other hand because new theoretical and empirical developments in the academic literature. This course aims to consider issues from different perspectives. It will address both the standard theory but also offer some of the new and alternative views. It is not only important to be aware off those different views from an practical point of view but it is also important for students who want to follow an academic career. Finance is a field that relies strongly on the interaction between academic and practitioners knowledge. Therefore will pay close attention to the relation between academic and practical developments. Student Learning Experience: Introduction to Financial Markets is an introductory finance course and has been structured in such a way as to assume no prior knowledge of finance. The student's success will be determined mostly by the time they invest in mastering the material. Ideally the student: Finance is to a large extent an acquired way of thinking and some acquire this way of thinking faster than others (good numerical skills, but also common sense and talent help). Active engagement with multiple choices questions and exercises will improve the student's likelihood of success. What may further help improve the student's skills beyond the study material is to read about financial markets in the real world (like the Financial Times) and apply the knowledge and insights from this course, or invest in (simulated) portfolios. There are numerous websites where students can practice trading and investing. There are academic articles that may be accessible to students at the undergraduate level. The Financial Analyst Journal is a good starting point. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-requisites | Co-requisites | ||
| Prohibited Combinations | Students MUST NOT also be taking Principles of Finance (BUST08003) | Other requirements | The course is only open to students in the following degree programmes: Accounting & Finance Business & Finance Economics with Finance. |
| Academic year 2020/21, Not available to visiting students (SS1) | Quota:None | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Course Start | Semester 2 | Timetable | Timetable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Learning and Teaching activities (Further Info) | Total Hours:200( Lecture Hours 30, Seminar/Tutorial Hours 9, Summative Assessment Hours 2, Programme Level Learning and Teaching Hours 4,Directed Learning and Independent Learning Hours155 ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assessment (Further Info) | Written Exam70 %,Coursework30 %,Practical Exam0 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Information (Assessment) | The assessment for the course comprises of a final examination (70%) and course work (30%). Coursework: Final Examination (70%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Feedback | Informal assessment and feedback During the course a range of informal methods of providing assessment feedback to students will be used. This type of work will not contribute to your mark for the course but is designed to help you assess your progress and allow you to take action as necessary. Examples of these modes of assessment include: -self-assessment by working through examples and comparing answers with solutions Students are expected to be self-motivated to make the most effective use of these informal assessment tools. Exam Feedback Your examination marks will be posted on LEARN (together with generic feedback and examination statistics) as soon as possible after the Boards of Examiners meeting. You will have the opportunity to look at your examination scripts at the UG Office Reception (Room 1.11, Business School, 29Buccleuch Place). Note that you will not be able to remove any examination scripts as they may be required by the Board of Examiners. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exam Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exam Diet | Paper Name | Hours & Minutes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Main Exam Diet S2 (April/May) | 3:00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resit Exam Diet (August) | 2:00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On completion of this course, the student will be able to:
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| The recommended textbook for the course is: Essentials of Investments: Global Edition, Bodie, Kane and Marcus, 11th Edition |
| Graduate Attributes and Skills | Cognitive Skills On completion of the course, students should be able: Key Skills On completion of the course, students should: Subject-Specific Skills On completion of the course, students should: |
| Additional Class Delivery Information | 3 x 1hr lectures per week (weeks 1-5, 6-10) 1 x 1hr tutorial per week (weeks 2-5, 6-10) |
| Keywords | Not entered |
| Course organiser | Dr Maria Michou Tel: (0131 6)50 8341 Email: Maria.Michou@ed.ac.uk | Course secretary | Mr Matthis Hervieux Tel: (0131 6)50 8336 Email: Matthis.Hervieux@ed.ac.uk |
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© Copyright 2020 The University of Edinburgh - 11 February 2021 3:32 am
As an enthusiast with a profound understanding of finance and financial markets, backed by both academic knowledge and practical experience, I'm well-equipped to delve into the intricacies of the course outline you've provided. Here's a breakdown of the concepts and elements mentioned:
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Course Outline:
- School: Business School
- College: College of Arts, Humanities and Social Sciences
- Credit Level: SCQF Level 8 (Year 1 Undergraduate)
- Availability: Not available to visiting students
- SCQF Credits: 20
- ECTS Credits: 10
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Summary:
- The course is exclusively for students enrolled in specific degree programs: Accounting & Finance, Business & Finance, Economics with Finance.
- Aims to provide a theoretical introduction to financial markets, focusing on asset valuation and trading.
- Topics include interest rates, bond pricing, stock market prices and returns, risk assessment, financial futures, and options.
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Course Description:
- Emphasizes the importance of understanding financial markets, especially in decision-making processes involving risk and returns.
- Covers valuation and trading of various assets like stocks, bonds, financial futures, and options.
- Acknowledges the evolving nature of financial markets, incorporating both traditional and contemporary perspectives.
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Student Learning Experience:
- Structured for students with no prior finance knowledge.
- Encourages active engagement through pre-lecture readings, attending lectures, self-assessment, tutorials, and revisiting study materials.
- Recognizes finance as a skill that requires practice and application in real-world scenarios.
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Entry Requirements:
- Open only to students in specific degree programs (Accounting & Finance, Business & Finance, Economics with Finance).
- No prohibited combinations.
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Course Delivery Information:
- Offered in Semester 2.
- Lecture hours: 30
- Seminar/Tutorial hours: 9
- Directed Learning and Independent Learning Hours: 155
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Assessment:
- Final examination: 70%
- Coursework: 30%, including a financial modeling element.
- Various informal assessment methods used throughout the course to aid student progress.
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Learning Outcomes:
- Understand and discuss financial assets and their valuation.
- Critically analyze finance theory and its application.
- Explain stock market principles, risk assessment, and pricing of financial derivatives.
- Comprehend the impact of exchange rates and interest rates on financial markets.
- Develop computing skills for financial modeling in Excel.
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Reading List:
- Recommended textbook: "Essentials of Investments: Global Edition" by Bodie, Kane, and Marcus, 11th Edition.
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Additional Information:
- Develops cognitive, key, and subject-specific skills applicable to finance.
- Course delivery includes lectures and tutorials spread over several weeks.
This comprehensive course equips students with essential knowledge and skills for understanding and navigating financial markets, preparing them for both practical decision-making and further academic pursuits in the field of finance.
