Financial Markets and Institutions
This finance course will expose learners to the workings of global financial markets, their key institutional features, and the theoretical underpinnings of their design. Topics will include different types of financial securities such as debt, equity, convertible debt, and preferred stocks traded in the market, their relative advantages and disadvantages and the roles of institutions such as banks, credit rating agencies and institutional investors (such as pension funds and activist investors) in these markets.
The course will critically evaluate the risk-return tradeoff inherent in different financial instruments, and how managers should think about using these instruments for their firms. The course will introduce the idea of information asymmetry and conflicts of interests among various stakeholders of the firm and how various financial securities overcome these conflicts. This will be followed by a critical evaluation of recent financial crises within the context of these conflicts.
|University:||University of Michigan|
|Workload per week:||3.0 h|
|Tags||convertible debt , credit rating agencies , debt , equity , finance , financial crisis , financial design , financial market , financial theory , information asymmetry , institutions , investment , risk-return tradeoff , securities , stocks|