The process allows for desynchronization (ie. separation) of income from consumption across time and economic states of nature, as well. Firms' issuance of debt and equity is in this context rationalized as contributing towards market completeness allowing risk-adverse investors to diversify their holdings of securities with unique, state-dependent payoffs, and thus consumption, across time and economic states.
Course outline
The course consists of two integrated modules:
Module 1: Introduction to Financial Markets and Institutions
- Supply and demand for savings: Determination of the general level of interest rates
- Loanable funds, interest rates and security valuation
Module 2: Major Financial Markets and Securities
- The bond market (the trading place for public and corporate debt)
- The stock market (the trading place for corporate equity)
- The foreign exchange market (the trading place for foreign currencies)
Mål
Vis/skjul hele kursbeskrivelsen
Kursansvarlig
Knut Sagmo
Institutt
Institutt for finansiell økonomi
Semester
Høst
Studiepoeng
7,5
Innledning
Forkunnskaper
Obligatorisk litteratur
Bøker:
Saunders, Anthony, Marcia Millon Cornett. 2012. Financial markets and institutions. 5th ed. McGraw-Hill/Irwin. 260 pages. Latest edition to be used in class.
Anbefalt litteratur
Bøker:
Fabozzi, Frank J., Franco Modigliani and Frank J. Jones. 2009. Foundations of financial markets and institutions. 4th ed. Pearson Education. 250
Emneoversikt
Dataverktøy
Gjennomføring
Eksamen
Eksamenskode(r)
Hjelpemidler til eksamen
Kontinuasjon