1. Financial Institutions and Markets FIN 304
Dr. Andrew L. H. Parkes
“A practical and hands on course on the valuation and financial management of corporations”
卜安吉

2. Syllabus and Our Course
The syllabus provides an outline of what we will do this semester:
Chapter 3 - 4, 8 – 12, 15, 16, of the textbook.
This week I will talk very briefly about Chapter 1 and then 3 & 4 about Market Basics.
The required textbook
Dec. 1, 2009
Financial Institutions and Markets Day 1

3. Lectures and Practice Problems
Lectures: 2 to 4 hours per week I will introduce the new material to you.
Practice Problems: We will do assignments from my slides and from the textbook.
You will have to prepare assignments for every class; there is NO class without homework (sometimes just reading).
You will do all of your own work during the course. Copied assignments will be given 0 marks.
Notice you must have access to WSJ, FT (also investopedia.com – Forbes, etc.).
Keep up to date with
Finance related issues
Dec. 1, 2009
Financial Institutions and Markets Day 1

4. Financial Institutions and Markets Day 1
Grading
Mid-term test - 20%
Final Exam - 50%
Homework %
Quizzes %
Total %
Dec. 1, 2009
Financial Institutions and Markets Day 1

5. Financial Institutions and Markets (Ch. 1)
Financial Management IS required for this course!
Look at the Definitions: Markets, Security, Assets, Bond, Interest rate, Stock, Foreign Exchange Market (rate) …
Dec. 1, 2009
Financial Institutions and Markets Day 1

6. SEE MY WEBSITE: andrewparkes.com
Often and regularly
Kept ahead of class
Links and PPT
Other information
Like this =>
Total Public Debt Outstanding
$ 9,139,880,193, /29/2007
$ 10,647,917,555, /26/2008
Dec. 1, 2009
Financial Institutions and Markets Day 1

7. Yuan trades at what rate today?
Why do I say the yuan is pegged?
Three Goals of any MACROECONOMY
Full Employment – Unemployment Rate
Economic Growth – REAL GDP
Price Stability - CPI
KNOW what real GDP and CPI mean
Quiz this class!!! – 5 pts
Dec. 1, 2009
Financial Institutions and Markets Day 1

8. Financial Institutions and Markets Day 1
U. S. Real GDP
Dec. 1, 2009
Financial Institutions and Markets Day 1
The Recession is over!

9. “Developed” Country Real GDP Forecasts
Q3 of 2009 at top
Q4 of 2009 below
2009 forecast at right side (these are ALL negative!)
Dec. 1, 2009
Financial Institutions and Markets Day 1

10. Prices of Gross Domestic Purchases 2000-2008
Dec. 1, 2009
Financial Institutions and Markets Day 1

11. Financial Institutions and Markets Day 1
KNOW WHO THE FED IS!?!
See my website if you need more info …
PPT from week 2 or 3 Intro to Finance
U.S. Macroeconomic Sites
People’s Bank of China
Website is available from andrewparkes.com
Know who they are and what they do!
These are the most important financial institutions in this class!
Dec. 1, 2009
Financial Institutions and Markets Day 1

12. Problem Set 1: CPI and GDP deflator
Calculation of Price Indices
Paasche – based on current year quantities
Laspeyres – based on past year quantities
Easy for you, eh?
Dec. 1, 2009
Financial Institutions and Markets Day 1