Financial Institutions and Markets ( 金融机构与市场 ) Dr. Andrew L. H. Parkes “A practical and hands on course on the valuation and financial management of corporations” 卜安吉

Sept. 4, 2012Financial Institutions and Markets Day 12 Syllabus and Our Course The syllabus provides an outline of what we will do this semester: The syllabus provides an outline of what we will do this semester: –Chapters 3 - 4, 8 – 12, 15, 16, of the textbook. This week I will talk very briefly about Chapter 1 and then 3 & 4 about Market Basics. This week I will talk very briefly about Chapter 1 and then 3 & 4 about Market Basics. The required textbook

Sept. 4, 2012Financial Institutions and Markets Day 13 Lectures and Practice Problems Lectures: 2 to 4 hours per week I will introduce the new material to you. Lectures: 2 to 4 hours per week I will introduce the new material to you. Practice Problems: We will do assignments from my slides and from the textbook. Practice Problems: We will do assignments from my slides and from the textbook. You will have to prepare assignments for every class; there is NO class without homework (sometimes just reading). You will have to prepare assignments for every class; there is NO class without homework (sometimes just reading). You will do all of your own work during the course. Copied assignments will be given 0 marks. You will do all of your own work during the course. Copied assignments will be given 0 marks. Notice you must have access to WSJ, FT (also investopedia.com – Forbes, etc.). Notice you must have access to WSJ, FT (also investopedia.com – Forbes, etc.). Keep up to date with Finance related issues

Sept. 4, 2012Financial Institutions and Markets Day 14 Grading Mid-term test - 20% Mid-term test - 20% Final Exam - 50% Final Exam - 50% Homework - 20% Homework - 20% Quizzes - 10% Quizzes - 10% Total - 100% Total - 100%

Sept. 4, 2012Financial Institutions and Markets Day 15 Financial Institutions and Markets (Ch. 1) Financial Management IS required for this course! Financial Management IS required for this course! Look at the Definitions: Markets, Security, Assets, Bond, Interest rate, Stock, Foreign Exchange Market (rate) … Look at the Definitions: Markets, Security, Assets, Bond, Interest rate, Stock, Foreign Exchange Market (rate) …

Sept. 4, 2012Financial Institutions and Markets Day 16 SEE MY WEBSITE: andrewparkes.com 1. Often and regularly 2. Kept ahead of class 3. Links and PPT 4. Other information Like this => Like this => Total Public Debt Outstanding $ 9,139,880,193, /29/2007 $ 10,647,917,555, /26/2008 $ 13,788,289,275, – 11/24/2010

Sept. 4, 2012Financial Institutions and Markets Day 17 Yuan trades at what rate today? Why do I say the yuan is pegged? Why do I say the yuan is pegged? Three Goals of any MACROECONOMY Three Goals of any MACROECONOMY –Full Employment – Unemployment Rate –Economic Growth – REAL GDP –Price Stability - CPI –KNOW what real GDP and CPI mean –Quiz this class!!! – 5 pts

Sept. 4, 2012Financial Institutions and Markets Day 18 U. S. Real GDP The Recession is over!

Sept. 4, 2012Financial Institutions and Markets Day 19 U. S. Real GDP The Great Recession!

Sept. 4, 2012Financial Institutions and Markets Day 110 Prices of Consumer Goods

Sept. 4, 2012Financial Institutions and Markets Day 111 CPI Percentage Changes

Sept. 4, 2012Financial Institutions and Markets Day 112 KNOW WHO THE FED IS!?! See my website if you need more info … See my website if you need more info … –PPT from week 2 or 3 Intro to Finance –U.S. Macroeconomic Sites People’s Bank of China People’s Bank of China –Website is available from andrewparkes.com andrewparkes.com –Know who they are and what they do! –These are the most important financial institutions in this class!

Sept. 4, 2012Financial Institutions and Markets Day 113 Problem Set 1: CPI and GDP deflator Calculation of Price Indices Calculation of Price Indices –Paasche – based on current year quantities –Laspeyres – based on past year quantities Easy for you, eh? Easy for you, eh? Due next class – Thursday, Sept. 6, 2012 Due next class – Thursday, Sept. 6, 2012