COURSE AIMS AND OBJECTIVES: Introduce students to the role, structure, regulation and functioning of modern financial markets and their role in economic development.
COURSE DESCRIPTION AND SYLLABUS:
1. The genesis of the financial markets and the role of financial markets in economic processes. Exchange of the claim rights as the basis of financial intermediation and financial market development. The establishment of the first stock exchange and the role of financial intermediaries. The market economy and stock market operations. The corporate financing structure and funding sources.
2. The modern configurations of the financial markets. The structure and types of financial markets. The institutional investors. Investment diversification. The ongoing process of innovation in financial markets.
3. The money market. Characteristics of the money market: concept, functions, regulation and organization. Participants in the money market. Money market instruments. Clearing and settlement systems in the money market.
4. The capital market. The concept, function, regulation and organization. Participants in the capital market. Stock exchange and over the counter markets. Capital market instruments. Stock and bond quotes. The role of clearing house in the capital market. The role and functions of investment banks in the capital market.
5. Financial derivatives market (futures, options and swaps).
6. Banks and financial markets. Types of banks. Analysis of the old and the new concept of banking. The structure of the bank balance sheet. Liquidity and risk management in banks. The bank credit policy. The relationship between commercial banks and the central bank.
7. The comparative analysis of money markets and capital markets in developed countries and Croatia.