UNIVERSITY OF MANITOBA I.H. ASPER SCHOOL OF BUSINESS

UNIVERSITY OF MANITOBA
I.H. ASPER SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING AND FINANCE
FIN 3460 – FINANCIAL MARKETS AND INSTITUTIONS
Fall 2014 session
Professor:
Office:
E-mail:
Office Hours:
Alok Dua
376 Drake Centre
[email protected]
M/W 10-11 a.m. and by appointments
PREREQUISITES:
Required Prerequisite: Corporation Finance – FIN 2200 with a grade of C+ or above.
COURSE OBJECTIVE:
This course provides students with an overall understanding about financial markets and institutions.
REQUIRED MATERIALS:
1. Mishkin and Eakins, Financial Markets & Institutions, 8th Edition, Prentice Hall, 2014,
ISBN -13-978-0-13-342362-4
2. Hewlett Packard HP-10BII financial calculator or other higher level financial calculators
RECOMMENDED READING:
It is suggested that you read about current business activities. This will enable you to see the course
material applied in real business situations. Two suggested sources of current business information are (1)
The National Post (Financial Post), and (2) The Globe and Mail (Report on Business). Both of these
publications are usually available outside the front door of the Drake Centre each morning. In addition,
copies are available in the library.
JUMP:
All supplemental material to the course will be available on JUMP. Students are responsible for
checking JUMP and downloading the relevant material before each class.
Follow the instructions below to log in to JUMP:
1. On the University of Manitoba homepage (www.umanitoba.ca), click on “JUMP”.
2. Login to JUMP using either your UMnetID or your Student Number as the Username. If you have
any question, you can click the “How do I login?” or the “Need Help” links.
3. Once logged in to your JUMP page, click on the “courses” tab.
4. Next, select the “Fall 2012” course schedule and click the “Financial Markets and Institutions”
course title.
GRADING AND EXAMINATIONS:
Final grades are based on the student’s weighted mark and performance relative to other students.
Participation
Presentation
Mid term 1
Mid term 2
Final Exam
Cummulative, 3 hrs, TBA
10%
10%
15%
15%
50%
To earn the marks for participation, show the card with your name on the table in every class and try to
answer the questions asked by the professor. The presentation is group work. Students in this course
should form groups of 1- 4 members. Members of each group should work together on the presentation.
The professor will distribute a list of presentation topics and each group should pick one topic from the
list. Each group’s topic has to be approved by the professor and the approval is on a ‘first come, first
served’ basis. The professor will schedule the date of each presentation. Depending on the progress of this
course, a presentation may be rescheduled to a later date (but not earlier). Before the presentation starts,
the presenting group must hand in a report with the names of the group members and the content of the
presentation. The presentation should last about 20 minutes. The grade for the presentation will be based
on evaluation by the audience (the rest of the class).
A student’s grade for the presentation will be based on his/her group’s grade and peer evaluation. After a
group finishes the presentation, each group member should email the professor his/her evaluation of other
group members’ performance. The evaluation should be on a scale of 1 to 5. Five is for the best
performance and 1 is for the lowest. If no evaluation is received from a certain student before the final
exam, the professor will assume that the student gives evaluations of 5 to all his/her group members. Any
student who harasses other group members about peer evaluation will lose the right to do peer evaluation
and be subject to further penalty.
The fine print:
Students are not allowed to miss the midterm exam unless a valid medical excuse is provided. Students with valid medical
excuses must complete and submit the “Medical Absenteeism Form” attached at the end of this syllabus. Both the student and
the attending physician must sign this document otherwise the excuse will be deemed invalid. The form is also available from
the department secretary. We would be happy to fax this form to you or your physician if necessary. There will be no make-up
exams. Those students who miss the midterm and have a valid medical excuse will have the weight of the midterm added to the
final exam. Those students who miss the midterm without a valid medical excuse will receive a mark of 0% on the midterm.
Groups should do the presentation on the date scheduled by the professor. If a group misses its presentation, all group members
will lose the grade for the presentation.
TENTATIVE COURSE SCHEDULE:
You will find that the course progresses quickly and the material covered builds on earlier material. It is
important to stay current in your studies. If you read the text in advance of the relevant classes, you will
have a much better chance of understanding the material as it is taught. It is the student’s responsibility
to read the assigned material prior to the relevant class.
Lecture
Sep 4, 9
Sep 11, 16, 18
Sep 23
Sep 25
Sep 30
Oct 2, 7
Oct 9
Oct 14
Oct 16, 21, 23
Oct 28
Oct 30
Nov 4
Nov 6
Nov 11
Nov 13
Topic
Overview of the Financial Markets and Institutions
The Fundamentals of Interest Rates
Central Banks and the Bank of Canada
Monetary Policy
The Money Markets
The Capital Markets
The Mortgage Markets
Mid term 1; Chapters 1-5, 9-13
The Foreign Exchange Market
Overview of Banks
Banking Regulation
Mutual Funds
Insurance Companies and Pension Funds
No Class
Investment Banks, Security Brokers and Dealers, Venture
Capital Firms
Nov 18
Risk Management in Financial Institutions
Nov 20
Mid term 2; ch 15-22
Nov 25, 27, Dec Presentations
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Dec 2 Self study Financial Crises
TBA
Final Exam
Chapter
1-2
3-5
9
10
11
12-13
14
15-16
17, 19
18
20
21
22
23
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cumulative
Note: all exams are to be done on an individual basis. It is an academic offense to use the material
or answers of another student or to provide another student with your material or answers. Any
suspected breach of the Faculty’s code of Academic Integrity will be reported to and dealt with by
the Dean’s office.
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FIN 3460 Financial Markets and Institutions
Presentation Topics:
Overview of the Federal Reserve System: Origin, Structure, Functions, and Independence
Money Market Instruments 1: Treasury Bills, Federal Funds, and Repos
Money Market Instruments 2: CDs, Commercial Paper, and Eurodollar
Bonds: Treasury Notes and Bonds, Municipal Bonds, and Corporate Bonds
Canadian Stock Markets: History, Current Situation and Future (Not in the Textbook)
Stock Market Indices: Describe and compare major stock market indices (Dow Jones Industrial,
NASDAQ, S&P500, S&P/TSX …)
Mortgage Backed Securities: Motivation, Definition, Characteristics of different types of Mortgage
Backed Securities
Commercial Banking Industry in Canada and the US: current situation, major differences between the two
countries, possible explanations (Only partially in the Textbook)
Credit Unions and Caisses Populaires in Canada (Not in the Textbook)
Savings and Loan Industry in the US
Credit Unions in the US
Mutual Funds
Hedge Funds
Life Insurance Companies: products, assets and liabilities…
P&C Insurance Companies: products, assets and liabilities…
Pension Plans: Definition, Types, Regulation, Future
Venture Capital Firms: Role, Organization, Operation
Finance Companies: Purpose, Types, Businesses, Assets and Liabilities, Historical Trend and Future
Other topics you are interested in (must be approved by the professor before you start preparing)
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FIN 3460 Financial Markets and Institutions
Alok Dua
Grading of Presentations
The grading of presentations will be done by the audience. To be considered as having good quality, a
presentation should have
1. Good organization. The presentation should have a clear structure easily understood by the
audience.
2. Good content. The presentation should cover the important points about a certain topic. The
important points should include, but not limited to, the major points in the textbook. The
presenting group can add any other points they consider as important. In addition, the presentation
should be up to date.
3. Clear explanation. The presenting group should explain the material clearly to the audience. The
audience is encouraged to ask questions. The professor may also ask questions. The presenters
should be ready to answer the questions and the answer will be considered in grading.
4. Interesting stuff, if possible. But the presenting group has to make sure that the stuff is relevant to
your presentation topic and is of academic nature. Don’t bring anything that may be offensive to
anyone.
Tips for getting good presentation evaluation: don’t just read from notes. Try to explain everything in your
own words. Have a lot of eye contact with the audience.
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Academic Integrity
It is critical to the reputation of the I. H. Asper School of Business and of our degrees, that everyone
associated with our faculty behaves with the highest academic integrity. As the faculty that helps create
business and government leaders, we have a special obligation to ensure that our ethical standards are
beyond reproach. Any dishonesty in our academic transactions violates this trust. The University of
Manitoba Undergraduate Calendar addresses the issue of academic dishonesty under the heading
“Plagiarism and Cheating.” Specifically, acts of academic dishonesty include, but are not limited to:
 using the exact words of a published or unpublished author without quotation marks and without
referencing the source of these words
 duplicating a table, graph or diagram, in whole or in part, without referencing the source
 paraphrasing the conceptual framework, research design, interpretation, or any other ideas of
another person, whether written or verbal (e.g., personal communications, ideas from a verbal
presentation) without referencing the source
 copying the answers of another student in any test, examination, or take-home assignment
 providing answers to another student in any test, examination, or take-home assignment
 taking any unauthorized materials into an examination or term test (crib notes)
 impersonating another student or allowing another person to impersonate oneself for the purpose
of submitting academic work or writing any test or examination
 stealing or mutilating library materials
 accessing tests prior to the time and date of the sitting
 changing name or answer(s) on a test after that test has been graded and returned
 submitting the same paper or portions thereof for more than one assignment, without discussions
with the instructors involved.
Group Projects and Group Work
Many courses in the I. H. Asper School of Business require group projects. Students should be aware that
group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature
of group projects, all group members should exercise special care to insure that the group project does not
violate the policy on Academic Integrity. Should a violation occur, group members are jointly
accountable unless the violation can be attributed to a specific individual(s).
Some courses, while not requiring group projects, encourage students to work together in groups (or at
least do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this
issue as it relates to academic integrity with their instructor to avoid violating this policy.
In the I. H. Asper School of Business, all suspected cases of academic dishonesty are passed to the Dean’s
office in order to ensure consistency of treatment.
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UNIVERSITY OF MANITOBA
I. H. Asper School of Business
Medical Absenteeism Form
Student Identification: (please print clearly)
______________________________
Last Name
___________________ ___________ ________________________________
First Name
Middle Initial U of M Student Identification Number
I hereby authorize ________________________________ to verify with the attending physician or his/her
(Name of Instructor/Administrator)
staff or colleagues that the contents of this form are true.
________________________________________
Student’s Signature
_______________________________________
Date
To be completed by the attending physician: (after the above section is completed)
________________________________________
Physician’s Last Name (please print clearly)
______________________________
Physician’s First Name
________________
Middle Initial
___________________________________________ ________________________________ ________________
Street Address
City, Province
Postal Code
___________________________________________
Telephone Number
_________________________________
Fax Number
To the attention of the physician: Your evaluation of the student’s condition is being used for the purpose of
determining whether or not the student has a valid reason to miss an important exam or assignment. Your professional
evaluation is necessary to ensure that only valid cases are excused.
I certify that the nature of the student’s condition is severe enough to prevent the student from taking an exam or
completing an assignment. If requested, my associates or I will verify for the above-named instructor/administrator that
this information is accurate.
The student’s condition will likely span the following dates:
____________________________
(indicate start date)
until ____________________________
(indicate end date)
____________________________
Date
___________________________________
Physician’s Signature
Notes to physician:
 Please make a note in the student/patient’s file indicating that the student has given the above-named
instructor/administrator permission to verify with you, your staff, or your colleagues, that the information contained
on this form is correct. Thank you for your professional evaluation of this student’s condition.
 PLEASE ATTACH THIS FORM TO YOUR REGULAR OFFICE STATIONERY THAT INDICATES THE
STUDENT VISITED YOUR OFFICE.
Note to student:
 The use of this form is at the option of the student. However, in order to obtain an excused absence for an
assignment or exam, the student must obtain a doctor’s certification that the student’s condition is severe
enough to prevent the student from taking the exam or completing the assignment.
 It is NOT SUFFICIENT to provide a note that only indicates the student visited the doctor’s office.
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