Course Objectives:

This course aims to provide students the basic understanding of different modern financial instruments, especially the stock, bond and derivatives markets.  Students should study the issuing processes of different securities, trading mechanism, and the theories of portfolio/risk management.  This course spends a large part of effort in the evaluation of different asset class, such as debt instruments, equity, and derivatives.  After study this course, students should be able to distinguish different types of financial securities and take different strategies of investment based on their knowledge of personal preference and market characteristics.  They will also gain the fundamental knowledge on financial markets if they choose to become professionals in financial institutions.

Course Requirements:

1. This course is taught completely in English, which includes textbook, lecture, discussions, assignments and examinations.  It requires that the students have adequate skills of listening, reading, comprehension and writing in English.  

2. This course requires that students have adequate levels of mathematical and statistical knowledge, in order to perform calculations or analysis based on concepts and theories. Most of the problem solving assignments in this course require the students to apply models and concepts, by using financial calculators, to reach solutions.

3. On a higher level of requirement, students are expected to perform case analysis, applying the concepts and theories in international finance, using financial analyzing methods to draw conclusions and make suggestions. 

Course Contents:

1. Introduction of the financial markets and the major instruments, as well as the newest developments in the markets.

2. Theories and models of risk and return.  Efficient diversification and portfolio theories are also covered in this part.

3. Detail introduction of specific financial instruments such as bonds, stocks and options.  The concepts, theories, and analytical tools for these instruments will be presented in depth.  The practical application of these analytical tools will be required from the students.

4. Strategies of security investment will be discussed.

Credit: 2