Financial Markets: A Comprehensive Overviewis an essential course for finance and accounting professionals seeking to deepen their understanding of the global economic system. This course offers a detailed exploration of the major financial markets, including money, bond, stock, mortgage, foreign currency, and derivatives markets. The benefits are substantial: you will learn to identify different financial instruments and transactions, understand the impact of interest rates and monetary policy, and calculate financial figures like yield-to-maturity and mortgage equity. Additionally, the course delves into understanding financial risks and the role of the Federal Reserve System, providing practical knowledge that can be applied in real-world financial scenarios. This comprehensive overview is invaluable for professionals looking to enhance their expertise in financial markets and make informed decisions in their respective fields.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Chapter 1
Identify financial markets and the transactions that take place in them
Cite how the efficient market hypothesis is used
Identify the various types financial intermediaries
Identify characteristics of capital and money markets
Chapter 2
Identify how a bond's yield-to-maturity impacts how it is traded
Compare default risk, liquidity, and income tax considerations of different types of financial instruments
Identify various yield curve shapes and the theories behind them
Chapter 3
Cite the role that the Federal Reserve System in influencing interest rates and setting requirements and regulations
Identify the tools used by the Fed to conduct its monetary policy and explain how they impact the U.S. money supply
Identify how reserve deficiencies are calculated
Chapter 4
Identify the characteristics of the money markets
Identify the types of financial instruments that exist and transactions that occur in the money markets
Calculate interest income and payments for money market transactions
Chapter 5
Cite the primary characteristics the bond market
Identify terms and provisions set by bond issuers
Identify how bonds are rated
Define and explain terms related to bonds such as rate, bid, ask, and repurchase
Identify the unique attributes of Treasury, municipal, and corporate bonds
Differentiate between common and preferred stock
Differentiate between various stock markets and exchanges
Chapter 6
Calculate equity in a mortgage loan
Identify rules regarding mortgage insurance
Identify the various types of mortgage loans and the roles of agents and financial institutions play in the mortgage-lending process
Define default risk
Define terms related to mortgage-backed securities
Identify liquidity risk in various financial instruments
Chapter 7
Identify the characteristics of and terminology used in foreign exchange markets
Calculate direct and indirect foreign exchange quotes
Identify how economic factors influence foreign exchange rates
Define foreign exchange spot and forward contracts
Calculate payments for foreign exchange spot and forward contracts
Chapter 8
Define the various types of risk that impact financial markets
Identify ways to mitigate risks associated with financial markets
Identify instruments traded in derivatives markets
Identify the characteristics of forwards, futures, swaps, and options
Compare futures contracts and forward agreements
Compare credit default swaps, currency swaps, interest rate swaps, and equity swaps
Define terms related to option contracts
Major Topics
Financial Markets & Intermediaries
Interest Rates
Central Banking and Monetary Policy
Money Markets
Capital Markets (Part I)
Capital Markets (Part (II)
Foreign Exchange Markets
Derivatives Markets
