Financial Markets

Financial Markets and Intermediaries and Interest Rates v1.1

Financial markets represent the lifeblood of our global economy. These mechanisms promote greater economic efficiency by transferring funds from individuals, businesses and governments with an excess of available funds to those with a shortage. Funds are transferred in the financial markets through the purchase and sale of financial instruments (such as stocks and bonds). Short-term financial instruments are available in money markets, while longer-term financial instruments are purchased and sold in the world’s capital markets. Many financial markets have been in existence for hundreds of years; however, the modern era has brought along many new innovations such as securitization and the derivatives market.

This course begins with an overview of financial markets, continuing with a discussion of the structure of financial markets and pricing theory in financial markets, as well as a discussion of financial intermediaries. An overview of interest rates follows, then a discussion of the determination of interest rates, risk structure of interest rates, and term structure of interest rates.

Learning Objectives:

After completing this course, participants will be able to:

  • Identify the unique characteristics of financial markets.
  • Recognize the types of financial instruments traded in various financial markets.
  • Recognize the key aspects of the efficient market hypothesis.
  • Identify the roles that financial intermediaries play in financial markets; recognize the various types of financial intermediaries.
  • Calculate ‘simple’ and ‘compound’ interest.
  • Identify how a bond’s stated interest rate and its yield-to-maturity impacts the price at which it is traded.
  • Recognize how interest rates are derived under the ‘loanable funds theory’.
  • Calculate a bond’s yield given specific information regarding its risk structure.
  • Identify how a yield curve illustrates the term structure of interest rates; recognize various yield curve shapes and the theories behind them.


Prerequisites/Advanced Preparation:

None

Speaker / Author:

Michael J. Walker

Michael J. Walker CPA is a New England-based Certified Public Accountant with over fourteen years of accounting experience in the financial services, information technology services and construction industries. He is currently a Vice President at one of the largest financial institutions in the world. He has an extensive technical accounting background that includes hands-on experience with U.S. GAAP, Canadian GAAP and International Financial Reporting Standards (IFRS). His expertise includes the accounting for derivatives, fixed income investments & securitizations. He graduated from Bentley University with a B.S. in Finance (1995) and a M.S. in Accountancy (2000).

Details

Course Code : 99WAL08-A1

Release Date : 04/05/2024
Expire Date : 04/30/2026
Credits :
CPE 2.00
QAS 2.00
Length : 1hr 40min
Course Level : Overview
Course Type : QAS Self-Study
Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Finance

Theme : Financial Markets

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