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

Financial Institutions and Markets2 Syllabus and Our Course The syllabus provides an outline of what we will do this semester: Chapter 2, 9 – 12, 16, 17, 19 and 20, as well as Chapters of the textbook. The syllabus provides an outline of what we will do this semester: Chapter 2, 9 – 12, 16, 17, 19 and 20, as well as Chapters of the textbook. This week we will talk about Chapters 1 and 2; An Overview of the Financial System. This week we will talk about Chapters 1 and 2; An Overview of the Financial System. The required textbook

Financial Institutions and Markets3 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. You will have to prepare assignments for every class; there is NO class without homework. 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

Financial Institutions and Markets4 Grading Mid-term test - 20% Mid-term test - 20% Final Exam - 40% Final Exam - 40% Homework - 20% Homework - 20% Quizzes - 20% Quizzes - 20% Total - 100% Total - 100%

Financial Institutions and Markets5 Financial Institutions and Markets (Ch. 1) Financial Management IS required for this course! Financial Management IS required for this course! Definitions: Markets, Security, Assets, Bond, Interest rate, Stock, Foreign Exchange Market (rate) … Definitions: Markets, Security, Assets, Bond, Interest rate, Stock, Foreign Exchange Market (rate) …

Financial Institutions and Markets6 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

Financial Institutions and Markets7 Yuan trades at what rate today? See my website for an article! See my website for an article! 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 next class!!! – 5 pts

Financial Institutions and Markets8 U. S. Real GDP Grow at 5% or did it?

Financial Institutions and Markets9 Prices of Gross Domestic Purchases

Financial Institutions and Markets10 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 –U.S. Macroeconomic Sites People’s Bank of China People’s Bank of China –Website is available from mine –Know who they are and what they do! –These are the most important financial institutions in this class!

Financial Institutions and Markets11 Problem Set 1: CPI and GDP deflator Calculation of Price Indices Calculation of Price Indices –Paache –Laspeyers Easy for you, eh? Easy for you, eh?