FINC203-25S1 (C) Semester One 2025

Financial Markets, Institutions and Instruments

15 points

Details:
Start Date: Monday, 17 February 2025
End Date: Sunday, 22 June 2025
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 2 March 2025
  • Without academic penalty (including no fee refund): Sunday, 11 May 2025

Description

Description and analysis of the financial system, focusing on financial markets (domestic and international), financial asset trading mechanisms, market efficiency, institutions (intermediaries) and instruments (stocks, bonds, hybrid securities including derivatives).

This course is an introduction of the financial system, focusing on financial markets (domestic and international), financial asset trading mechanisms, market efficiency, institutions (intermediaries) and instruments (stocks, bonds, hybrid securities including derivatives).

In this course, you will learn the importance of the financial system of an economy, how domestic and international financial markets and institutions function, the types of securities traded in markets and the trading mechanisms of financial securities. You will develop an understanding of how to use and evaluate valuation models for financial securities.

Learning Outcomes

The objectives of the course are:
1. Demonstrate understanding of the role of the financial system in the economy
2. Demonstrate understanding of the function and services of financial institutions
3. Demonstrate understanding of the characteristics of money market and capital market, and how securities are traded in financial markets
4. Explain how interest rates are determined and the relationship between interest rates and the term to maturity of a financial instrument
5. Explain how to calculate the value of a bond
6. Value a share with dividend valuation model
7. Demonstrate understanding of the characteristics and uses of derivatives such as futures and options
8. Demonstrate understanding of the role of reserve banks
9. Demonstrate understanding of how foreign exchange markets operate and facilitate international trade
10.Discuss the reasons that banks are regulated

University Graduate Attributes

This course will provide students with an opportunity to develop the Graduate Attributes specified below:

Critically competent in a core academic discipline of their award

Students know and can critically evaluate and, where applicable, apply this knowledge to topics/issues within their majoring subject.

Employable, innovative and enterprising

Students will develop key skills and attributes sought by employers that can be used in a range of applications.

Biculturally competent and confident

Students will be aware of and understand the nature of biculturalism in Aotearoa New Zealand, and its relevance to their area of study and/or their degree.

Engaged with the community

Students will have observed and understood a culture within a community by reflecting on their own performance and experiences within that community.

Globally aware

Students will comprehend the influence of global conditions on their discipline and will be competent in engaging with global and multi-cultural contexts.

Prerequisites

(1) STAT101; and (2) A further 45 points.

Restrictions

AFIS214

Equivalent Courses

AFIS214

Timetable 2025

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Monday 16:00 - 17:00 K1 Lecture Theatre
17 Feb - 6 Apr
28 Apr - 1 Jun
Lecture B
Activity Day Time Location Weeks
01 Tuesday 09:00 - 10:00 Haere-roa 118 Ngaio Marsh Theatre
17 Feb - 6 Apr
28 Apr - 1 Jun
Lecture C
Activity Day Time Location Weeks
01 Thursday 09:00 - 10:00 A1 Lecture Theatre
17 Feb - 6 Apr
28 Apr - 1 Jun
Tutorial A
Activity Day Time Location Weeks
01 Monday 09:00 - 10:00 Rehua 529
17 Feb - 6 Apr
28 Apr - 1 Jun
02 Thursday 13:00 - 14:00 Beatrice Tinsley 112
17 Feb - 6 Apr
28 Apr - 1 Jun
03 Monday 10:00 - 11:00 E6 Lecture Theatre
17 Feb - 6 Apr
28 Apr - 1 Jun
04 Monday 12:00 - 13:00 John Britten 117 HP Seminar Room
17 Feb - 6 Apr
28 Apr - 1 Jun
05 Monday 09:00 - 10:00 Meremere 105 Lecture Theatre
17 Feb - 6 Apr
28 Apr - 1 Jun
06 Monday 09:00 - 10:00 Elsie Locke 104A
17 Feb - 6 Apr
28 Apr - 1 Jun
07 Monday 11:00 - 12:00 Rehua 002 Lectorial
17 Feb - 6 Apr
28 Apr - 1 Jun
08 Monday 14:00 - 15:00 F1 Lectorial
17 Feb - 6 Apr
28 Apr - 1 Jun

Course Coordinator / Lecturer

Philip Vermeulen

Assessment

Assessment Due Date Percentage  Description
Final exam 45%
Quizzes 15% Five on-line quizzes
Term test 40%


(a) Five online quizzes. Each contributes 3% for a total of 15%.
The quizzes will be on Mondays in week 4, 6, 8, 10 and 12. The quizzes will be available for 48 hours from Monday at 11:59 am until Wednesday at 11:59 am. You will have 45 minutes to complete each and can attempt each quiz twice. You will need to wait one hour between your attempts and the best score will be recorded.
(b) Term test contributing 40% of the final grade.
The date of the term test is TBA later.
This will include materials from week one through week 6.
(c) The final exam contributing 45% of the final grade.

To pass the course, you must earn a 50% or higher overall, but you must also earn a 45% or above on the final exam. It will be scheduled by the university and will be comprehensive.

In recognising that Te Reo Māori is an official language of New Zealand, the University provides for students who may wish to use Te Reo Māori in their assessment. If you intend to submit your work in Te Reo Māori you are required to do the following:
Read the Assessment in Te Reo Māori Policy and ensure that you meet the conditions set out in the policy. This includes, but is not limited to, informing the Course Coordinator 1) no later than 10 working days after the commencement of the course that you wish to use Te Reo Māori and 2) at least 15 working days before each assessment due date that you wish to use Te Reo Māori.

Textbooks / Resources

Recommended Reading

Kidwell, David S; Financial markets, institutions and money ; Fourth edition; John Wiley and Sons Australia, Ltd, 2019.

Indicative Fees

Domestic fee $946.00

International fee $4,363.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All FINC203 Occurrences

  • FINC203-25S1 (C) Semester One 2025