Most finance courses assume that markets are efficient and that securities can be issued and traded easily and at no cost.  In practice markets are more complex and there are substantial costs associated with issuing and trading securities.  This course therefore explores (i) how markets are organised; (ii) how trading is conducted in these markets; (iii) the role of different types of market participants; and (iv) how markets are regulated.  It considers how these factors influence price formation, investment returns and capital raising. 

There are goals for students in this course:

• To understand how securities are traded in markets around the world and appreciate how this influences trading costs and liquidity;
• To understand the role of regulation and how it impacts participants in financial markets;
• To understand how price formation can be influenced by market architecture;
• To understand the interaction between trading in secondary markets and capital raising in primary markets. 

May include in-class assessment, assignments, mid-semester, and final examinations. To obtain an automatic pass grade in this unit you must obtain 50% or more as an aggregate mark on the assessment.

At least three contact hours per week (two one and a half hour lectures) plus private study time.

At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree with at least one year of university level study in quantitative analysis, including basic mathematics and data analysis techniques.

FINM7007 Applied Corporate Finance, FINM7008 Applied Investments, FINM7041 Applied Derivatives and FINM7044 Applied Valuation

See Course Website