Description of Individual Course Units
Course Unit CodeCourse Unit TitleType of Course UnitYear of StudySemesterNumber of ECTS Credits
1302009022018PORTFOLIO MANAGEMENT AND STOCK MARKET PRACTISESElective365
Level of Course Unit
First Cycle
Objectives of the Course
The main objective of this course is to help students • understand the financial markets, institutions and instruments • follow financial developments • carry out financial analysis. • evaluate and analyse the transaction in assets
Name of Lecturer(s)
Learning Outcomes
11. To be able to define financial markets
22. To be able to define and compare financial instruments
33. To be able to analyze the role of a central bank in an economy, and to propose policies.
44. To be able to compare the strategies of the monetary policy
55. To be able to follow data in national and international financial markets and interpret them.
Mode of Delivery
Face to Face
Prerequisites and co-requisities
None
Recommended Optional Programme Components
None
Course Contents
Why Study Financial Markets and Institutions? Overview of the Financial System, Structure of Central Banks, Monetary Policy Tools, Goals, Strategy and Tactics, Money Markets – The Bond Market, The Stock Market – The Mortgage Markets The Foreign Exchange Market – The International Financial System.
Weekly Detailed Course Contents
WeekTheoreticalPracticeLaboratory
1I. Define the lessons subject
2I. Why Study Financial Markets and Institutions? i. Debt Markets and Interest Rates ii. Stock Market iii. Foreign Exchange Market iv. Central Banks v. Structure of the Financial System vi. Banks and Other Financial Institutions
3II. Overview of the Financial System i. Function of Financial Market ii. Structure of Financial Market iii. Function of Financial Intermediaries iv. Types of Financial Intermediaries v. Regulation of Financial System
4III. Structure of Central Banks i. Structure and Independence of Central Banks ii. Explaining Central Bank Behaviour
5IV. Monetary Policy Tools, Goals, Strategy and Tactics i. The Central Bank's Balance Sheet ii. Tools of Monetary Policy iii. Goals of Monetary Policy
6V. Monetary Policy Tools, Goals, Strategy and Tactics i. Central Bank Strategy: Use of Targets ii. Monetary Targeting The New International Trend in Monetary Policy Strategy: Inflation Targeting
7VI. Money Markets i. Why Do We Need the Money Markets? ii. The Purpose of the Money Markets iii. Who Participates in the Money Markets? iv. Money Market Instruments
8Midterm Exam
9VII. The Bond Market i. Purpose of the Capital Market ii. Capital Market Participants
10VIII. The Bond Market i. Types of Bonds ii. Treasury Bonds iii. Bond Yield Calculations
11IX. The Stock Market i. Investing in Stocks ii. Computing the Price of Common Stock
12X. The Stock Market i. How the Market Sets Security Prices ii. Stock Market Indexes iii. Buying Foreign Stocks
13XI. The Mortgage Markets i. Characteristics of the Residential Mortgage ii. Mortgage-Lending Institutions iii. Secondary Mortgage; Market
14XII. The Foreign Exchange Market i. Foreign Exchange Market ii. Exchange Rates in the Long Run iii. Exchange Rates in the Short Run iv. Explaining Changes in Exchange Rates
15XIII. The International Financial System i. Intervention in the Foreign Exchange Market ii. Balance of Payments iii. Exchange Rate Regimes in the International Financial System iv. Capital Controls
16Final Exam
Recommended or Required Reading
Mishkin, F. S. and Eakins, S. G (2009), Financial Markets and Institutions, 6th Ed., Pearson-Prentice Hall. Mishkin, F. S. (2007), The Economics of Money, Banking, and Financial Markets, 8th International Edition, Pearson-Addison Wesley. Howells, P. and Bain, K. (2008), The Economics of Money, Banking and Finance: A European Text, 4th Ed., Pearson-Prentice Hall. Fabozzi, F. J., Modigliani, F., and Jones, F. J. (2007), Foundations of Financial Markets and Institutions, 4th Ed., Pearson-Prentice Hall. Marc, L. (2005), Guide to Financial Markets, 4th Edition, The Economist. Bailey, R. E. (2005), The Economics of Financial Markets, Cambridge University Press. Steiner, B. (2002), Foreign, Exchange and Money Markets: Theory, Practice and Risk Management, Butterworth-Heinemann. Gregoriou, G. N., Hübner, G., Papageorgiou, N., and Rouah, N. (2005), Hedge Funds: Insights in Performance Measurement, Risk Analysis, and Portfolio Allocation, John Wiley and Sons. Levi, M. D. (2009), International Finance, 4th Edition, Routledge. Buckley, A. (2004), Multinational Finance, 5th Edition, Pearson-PrenticeHall. Fabozzi, F. J., Mann, S. V., and Choudhry, M. (2002), The Global Money Markets, John Wiley and Sons. Roberts, R. (2002), Wall Street The Markets Mechanisms and Players, The Economist. Parasız, İ. (2000), Para Banka ve Finansal Piyasalar, 7. Baskı, Ezgi Kitap Evi. Günal, M. (2007), Para Banka va Finansal Sistem, 2. Bskı, Yeni Dönem Yayını.
Planned Learning Activities and Teaching Methods
Assessment Methods and Criteria
Term (or Year) Learning ActivitiesQuantityWeight
SUM0
End Of Term (or Year) Learning ActivitiesQuantityWeight
SUM0
SUM0
Language of Instruction
English
Work Placement(s)
None
Workload Calculation
ActivitiesNumberTime (hours)Total Work Load (hours)
Midterm Examination122
Final Examination122
Attending Lectures16348
Project Preparation8216
Individual Study for Homework Problems818
Individual Study for Mid term Examination10220
Individual Study for Final Examination20240
Reading7214
TOTAL WORKLOAD (hours)150
Contribution of Learning Outcomes to Programme Outcomes
PO
1
PO
2
PO
3
PO
4
PO
5
PO
6
PO
7
PO
8
PO
9
PO
10
LO1       4 5
LO2     2  4 
LO34  2  52 4
LO4 3  24  4 
LO5  5 5  5 4
* Contribution Level : 1 Very low 2 Low 3 Medium 4 High 5 Very High
 
Ege University, Bornova - İzmir / TURKEY • Phone: +90 232 311 10 10 • e-mail: intrec@mail.ege.edu.tr