This subject introduces students to the mechanics of financial markets and institutions. The emphasis is on how markets work, how instruments are priced and how they are traded. The subject covers the evolution of financial institutions both in Australia and internationally, their roles and response to regulations and deregulation. The subject also considers the types and functions of financial intermediaries.
|Faculty||Bond Business School|
|Study abroad||Available to Study Abroad students|
1. Discuss the main participants in the Australian financial system and their roles.
2. Explain the main features of a modern financial system, with particular emphasis on the role of financial intermediaries.
3. Explain the structure and purpose of both the public and private equity markets.
4. Describe the characteristics of different types of debt securities and be able to price them.
5. Describe different theories of interest rate determination and explain the relationship between term to maturity, risk and interest rates.
6. Discuss the advantages and disadvantages of different measures of investment risk, and how the distribution of returns influences the assessment of risk.
7. Understand the nature and importance of risk management, with particular reference to the use of futures, forwards and swaps in managing specific risk exposures.
8. Describe the role of regulatory authorities in regulating how financial intermediaries manage their capital, and discuss the recent changes in international regulation on capital adequacy.
Students must have successfully completed FINC12-200 Fundamentals of Finance or equivalent prior to undertaking FINC13-304.