Financial Institutions and Markets FIN 304 Dr. Andrew L. H. Parkes “A practical and hands on course on the valuation and financial management of corporations” 卜安吉

Syllabus and Our Course The syllabus provides an outline of what we will do this semester: Chapter 3 - 4, 8 – 12, 15, 16, 19 - 24 of the textbook. This week I will talk very briefly about Chapter 1 and then 3 & 4 about Market Basics. The required textbook Dec. 1, 2009 Financial Institutions and Markets Day 1

Lectures and Practice Problems 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. 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. Notice you must have access to WSJ, FT (also investopedia.com – Forbes, etc.). Keep up to date with Finance related issues Dec. 1, 2009 Financial Institutions and Markets Day 1

Financial Institutions and Markets Day 1 Grading Mid-term test - 20% Final Exam - 50% Homework - 20% Quizzes - 10% Total - 100% Dec. 1, 2009 Financial Institutions and Markets Day 1

Financial Institutions and Markets (Ch. 1) Financial Management IS required for this course! Look at the Definitions: Markets, Security, Assets, Bond, Interest rate, Stock, Foreign Exchange Market (rate) … Dec. 1, 2009 Financial Institutions and Markets Day 1

SEE MY WEBSITE: andrewparkes.com Often and regularly Kept ahead of class Links and PPT Other information andrew@andrewparkes.com Like this => Total Public Debt Outstanding $ 9,139,880,193,861.94 - 11/29/2007 $ 10,647,917,555,364.39 - 11/26/2008 Dec. 1, 2009 Financial Institutions and Markets Day 1

Yuan trades at what rate today? Why do I say the yuan is pegged? 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 Dec. 1, 2009 Financial Institutions and Markets Day 1

Financial Institutions and Markets Day 1 U. S. Real GDP 2000 - 2008 Dec. 1, 2009 Financial Institutions and Markets Day 1 The Recession is over!

“Developed” Country Real GDP Forecasts Q3 of 2009 at top Q4 of 2009 below 2009 forecast at right side (these are ALL negative!) http://www.economist.com/daily/news/displaystory.cfm?story_id=14389086&fsrc=nwl Dec. 1, 2009 Financial Institutions and Markets Day 1

Prices of Gross Domestic Purchases 2000-2008 Dec. 1, 2009 Financial Institutions and Markets Day 1 http://www.bls.gov/news.release/pdf/cpi.pdf

Financial Institutions and Markets Day 1 KNOW WHO THE FED IS!?! 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 Website is available from andrewparkes.com Know who they are and what they do! These are the most important financial institutions in this class! Dec. 1, 2009 Financial Institutions and Markets Day 1

Problem Set 1: CPI and GDP deflator Calculation of Price Indices Paasche – based on current year quantities Laspeyres – based on past year quantities Easy for you, eh? Dec. 1, 2009 Financial Institutions and Markets Day 1