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AAF9200

Financial markets and instruments

Mr Peter Howard and Ms Patricia McBride

One 3-hour session per week
* First semester
* Clayton ï Prerequisite: AAF9020

Objectives On completion of this subject students should be able to provide an overview of the Australian financial system; familiar with the basic types of financial instruments and institutional users; able to interpret flow-of-funds accounts and aggregate balance sheets; familiar with the main forms and sources of equity and debt finance, able to apply financial mathematical techniques to financial instruments; able to explain the operation of capital and derivatives markets.

Synopsis This subject is designed for students seeking a detailed understanding of the working of financial markets, including the institutions which operate in these markets and the financial instruments that are traded. It is taught on the assumption that students are familiar with the main features of the Australian financial system. Issues covered include the nature of financial instruments, flow-of-funds accounting, equity finance, financial mathematics, debt finance and derivatives markets.

Assessment Written (2000-word assignment): 20%
* Examination (3 hours): 80%


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