North South University

School of Business
Program: BBA
Semester: Spring 2009
Course Code: FIN 433.1 Class Time: S/T: 9:40 – 11:10
Course Title: Financial Markets & Venue: SPZ 200M
Institutions Office Hours:
 Sunday: 3:30 – 5:00
 Monday: (11:15 – 2:30)+ (4:15 – 5:15)
 Wednesday: (11:15 – 2:30)+ (4:15 –
5:15)

Instructor: Mohammed Sohail Mustafa

Lecturer, School of Business
Office: SPZ 1306
Contact: 9885611 up to 20 (Ext: 220)
smustafa@northsouth.edu

Course Descriptions
This module offers a detailed coverage of global financial markets, institutions
and their analysis. Emphasis is placed on developing sound theoretical
principles in the analysis of global financial markets and institutions. The aim
is to develop practical financial market skills to complement and build on
theory delivered in classes. Having established an overview of the financial
environment, the module will consider the role of key central banks and
monetary policies in the price development of various financial markets. The
role of the regulatory bodies will also be considered together with the role of
major institutional investors in the financial services sector. Later, focus will
shift to develop critical and analytical approaches to understanding the
financial markets, namely; currency, debt, equity, derivatives and selected
structured products. The learning and skills acquired in this module will
provide basic grounding for students on our host finance related courses.
Module Aims
a) Present an overview of the financial environment. Analyse the functions
and workings of the financial markets and institutions. Study the role of
Central Banks. Impact of monetary policies on the structure and evolution
of term structures of interest rates, as well as their impact on various
security markets studied in this module.
b) The role of the regulators will be considered. The structure, policies and
objectives of major institutional investors will be critically examined. As
institutional investors the role of mutual funds, pension funds and hedge
funds will be analyzed in some detail.
c) Financial markets and their analyses. The following characteristics and
pricing implications in the following markets will be critically evaluated;
currency markets, interest rate and debt markets, equity markets,
derivative security markets, emerging markets, alternative investment
markets and structured product markets. Knowledge and detailed analysis
of these markets and institutions will enhance the student’s ability to gain

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 a better grasp of their importance in all activities currently undertaken by
professionals working in the global financial services industry.
Principal Text

o Jeff Madura, Financial Markets & Institutions, 8th edition,

Thomson/South-Western Publication.

Reference Texts

o Peter S. Rose & Milton H. Marquis, Money & Capital Market, 10 th edition,
McGraw Hill publication.
o Linda Allen, Capital Markets & Institutions: A Global View, John Willey
(2000).
o David Blake, Financial Markets Analysis, 2 nd edition, John Willey & Sons
(2006).
o Anthony Saunders & Cornett, Financial Markets & Institutions: A
Modern Perspectives, Latest edition, McGraw Hill/Irwin publication.
o Frank J. Fabozzi, Franco G. Modigliani, Frank Jones, Michael J Ferri,
Foundations of Financial Markets & Institutions, 3rd edition,
o Frederick S. Mishkin & Stanely G.Eakins, Financial Markets &
Institutions, 6th edition, Addison Wesley (2008).
Projects

All students will be required to submit a Research paper. This paper must be typed/word
processed. The length of the paper should be 30-50 pages. The submission date of this
paper will be announced in the class. The Research Paper will account for 10% of your
total grade for this course. Grammar & spelling will be counted. All students will be
required to research an aspect of International Economic thought. Each student will
conduct a written interpretation & analysis of current International economic problem.
All papers will include a comprehensive bibliography. Footnotes are to be used if you
are using the direct reference to author’s work. Research topics will be discussed &
assigned in the class. Project topics will be given in the class & outlines will be
discussed. Project topics will cover the following areas.
 Dhaka Stock Exchange (DSE) & Chittagong Stock Exchange
(CSE).
 Securities & Exchange Commissions.
 Investment Corporation of Bangladesh (ICB) & Mutual Funds.
 Bangladesh Bank.
 Stock Price Volatility.
 Merchant Banking.
 Insurance Companies.
Examinations

There will be two mid term examinations & a final examination as per NSU
policy. At the end of every two chapters, there will a Quiz conducted in the
beginning of the following lecture. The duration of the quiz will be 10 minutes
for 10 MCQs. The structure of the questions of the mid terms & final will be
discussed in the class.

Make Up Examination Policy:

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There will be usually no make up examination. Under extreme circumstances
like sickness or accident of the student, make up examination may be arranged
as per following criteria:
 Student or guardian must inform the situation to the faculty before the
examination.
 A written application will be submitted along with the recommendation of
Dean/Director/Associate Director of Business School.
 A recommendation from NSU Physician.

Base of Evaluation

Mid Term I 20%

Mid Term II 20%
Final Examination 25%
Project & Assignments 20%
Attendance 5%
Quizzes 10%
Total 100%
Grade as per NSU Catalog

Course Contents (tentative)

Chapters Contents Sessions

One (1) Role of Financial Markets & Institutions (1-2)

Two (2) Determination of Interest Rates (3-4)
Three (4) Functions of the Fed (5)
Four (5) Monetary Theory & Policy (6-7)
Mid Term Examination: 01 (8)
Five (6) Money Markets (9)
Six (7) Bond Markets (10)
Seven (8) Bond Valuation & Risk (11-12)
Eight (10) Stock Offerings & Investor Monitoring (13-14)
Nine (11) Stock Valuation & Risk (15-16)
Mid Term Examination: 02 (17)
Ten (12) Market Microstructure & Strategies (18)
Eleven (17) Commercial Bank Operations (19)
Twelve (20) Bank Performance (20-21)
Thirteen (22) Consumer Finance Operations (22)
Fourteen (23) Mutual Fund Operations (23)
Fifteen (25) Insurance & Pension Fund Operations (24)
Final Examination (25)