Course Detail
Course Description
| Course | Code | Semester | T+P (Hour) | Credit | ECTS |
|---|---|---|---|---|---|
| CAPITAL MARKETS | - | Fall Semester | 3+0 | 3 | 5 |
| Course Program |
| Prerequisites Courses | |
| Recommended Elective Courses |
| Language of Course | English |
| Course Level | First Cycle (Bachelor's Degree) |
| Course Type | Elective |
| Course Coordinator | |
| Name of Lecturer(s) | Assoc.Prof. Talat ULUSSEVER |
| Assistant(s) | |
| Aim | The aim of this course is to provide students with a general understanding of the functioning of financial markets, with a special focus on globalization and its effects on financialization. |
| Course Content | This course contains; Overview of Financial Markets,Structure and Functioning of Financial Markets,Meaning of Interest Rate Notion,Factors underlying changes in interest rate,Rısk Structure of Interest Rates,Rısk Structure of Interest Rates,Asymmetric Information: Adverse Selection and Moral Hazard,Financial Development and Economic Growth,Asymmetric Information and Financial Crises,Project Presentations,Project Presentations,Stock Market,Bond and Exchange Rate Markets,Overview of The Semester. |
| Dersin Öğrenme Kazanımları | Teaching Methods | Assessment Methods |
| 1. Will be able to express what financial markets are and why we need to study them. | 16, 6, 9 | A, G |
| 1.1. Explains why we need to understand financial markets. | ||
| 1.2. Explains why we need to understand financial institutions. | ||
| 1.3. Explains how to study financial markets and institutions. | ||
| 1.4 Explains the development of financial markets and Islamic financial markets in Turkey. | ||
| 2. Will be able to uderstand the mechanism and structure of financial markets, and gain an intuition of how financial markets and financial intermediaries affect the economy. | 16, 6, 9 | A, G |
| 2.1. Explains the function of financial markets. | ||
| 2.2. EXplains the structure of financial markets. | ||
| 2.3. Explains the globalization of financial markets. | ||
| 2.4 Explains the effect of globalization in the development of the financial markets in Turkey after 2008 global financial crisis. | ||
| 3. Will be able to explain what exactly interest rate means, and the difference between nominal and real interest rates. | 16, 6, 9 | A, G |
| 3.1. Measures and determines interest rates. | ||
| 3.2. Explains the distinction between real and nominal interest rates. | ||
| 3.3. Explains the distinction between interest rates and rates of return. | ||
| 3.4. Compares the difference between the nominal and real interest rates of conventional debt instruments with that of the nominal and real rates of return of Islamic instruments. | ||
| 4. Will be able to explain why the overall level of nominal interest rates changes and the factors that induce these changes. | 16, 6, 9 | A, G |
| 4.1. Explains the determinants of asset demand. | ||
| 4.2. Investigates the supply and demand in the bond and sukuk markets in Turkey. | ||
| 4.3 Examines the changes in equilibrium interest rates. | ||
| 5. Will be able to determine the types of interest-bearing instruments firms need to invest in by comparing the differences in the interest rates of various instruments. | 16, 6, 9 | A, G |
| 5.1. Investigates the risk structure of interest rates. | ||
| 5.2. Uses the yield curve and business cycles as a forecasting tool for inflation. | ||
| 5.3 Explains the behaviour of the yield curve in Turkey before and after the 2001 crisis and the 2008 global financial crisis. | ||
| 5.4. Forecasts interest rates using the term structure. | ||
| 6. Will be able to explain why an efficient market is needed for economic efficiency. | 16, 6, 9 | A, G |
| 6.1 Explains the efficient market hypothesis, the rationale behind the hypothesis, and the stronger version of the efficient market hypothesis. | ||
| 6.2 Examines the evidence on the efficient market hypothesis. | ||
| 6.3 Investigates the evidence in favor of and against the efficiency of capital markets in Turkey. | ||
| 6.4. Explains the connection between financial development and economic growth. | ||
| 7. Will be able to explain information asymmetry and its influence in development of financial crises. | 16, 6, 9 | A, G |
| 7.1. Expresses basic facts about the financial structure throughout the world. | ||
| 7.2. Explains the two types of information asymmetry: adverse selection and moral hazard. | ||
| 7.3. Examines the precautions Capital Markets Board of Turkey has taken to minimize the asymmetric information problems in IPO's. | ||
| 8. Will be able to explain the basic dynamics of stock markets and the resulting prices. | 16, 6, 9 | A, G |
| 8.1. Examines various aspects of investing in stocks. | ||
| 8.2 Examines and applies some methods of pricing common stocks. | ||
| 8.3. Explains how stock prices are formed in common stock markets. | ||
| 8.4 Explains common mistakes in valuation. | ||
| 9. Will be able to apply the basic principles of bond markets and foreign exchange markets. | 16, 6, 9 | A, G |
| 9.1. Explains the function of the bond market. | ||
| 9.2. Explains the actors in the bond market. | ||
| 9.3. Explains the types of bonds. | ||
| 9.4. Defines the exchange rate and explains its importance. | ||
| 9.5. Explains the exchange rate determination in the short run and in the long run. |
| Teaching Methods: | 16: Question - Answer Technique, 6: Experiential Learning, 9: Lecture Method |
| Assessment Methods: | A: Traditional Written Exam, G: Quiz |
Course Outline
| Order | Subjects | Preliminary Work |
|---|---|---|
| 1 | Overview of Financial Markets | |
| 2 | Structure and Functioning of Financial Markets | |
| 3 | Meaning of Interest Rate Notion | |
| 4 | Factors underlying changes in interest rate | |
| 5 | Rısk Structure of Interest Rates | |
| 6 | Rısk Structure of Interest Rates | |
| 7 | Asymmetric Information: Adverse Selection and Moral Hazard | |
| 8 | Financial Development and Economic Growth | |
| 9 | Asymmetric Information and Financial Crises | |
| 10 | Project Presentations | |
| 11 | Project Presentations | |
| 12 | Stock Market | |
| 13 | Bond and Exchange Rate Markets | |
| 14 | Overview of The Semester |
| Resources |
| - Financial Markets and Institutions, Frederic S. Mishkin and Stanley G. Eakins, 8th Edition, 2014. |
| - Financial Markets and Institutions, Anthony Saunders and Marcia Cornett, International Edition, 2018. |
Course Contribution to Program Qualifications
| Course Contribution to Program Qualifications | |||||||
| No | Program Qualification | Contribution Level | |||||
| 1 | 2 | 3 | 4 | 5 | |||
| 1 | (S)he describes theoretical knowledge in economics and finance. | X | |||||
| 2 | (S)he explains mathematical and statistical methods needed for economics and finance. | X | |||||
| 3 | (S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB). | ||||||
| 4 | (S)he has the foreign language proficiency necessary for economics and finance. | X | |||||
| 5 | (S)he develops projects in the field and handles team work. | X | |||||
| 6 | (S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach. | X | |||||
| 7 | (S)he uses theoretical and practical knowledge on economics and finance. | X | |||||
| 8 | (S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1. | ||||||
| 9 | (S)he adopts and uses organizational, corporate and social ethical values. | X | |||||
| 10 | (S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity. | ||||||
| 11 | (S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies. | X | |||||
| 12 | (S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field. | X | |||||
Assessment Methods
| Contribution Level | Absolute Evaluation | |
| Rate of Midterm Exam to Success | 50 | |
| Rate of Final Exam to Success | 50 | |
| Total | 100 | |
| ECTS / Workload Table | ||||||
| Activities | Number of | Duration(Hour) | Total Workload(Hour) | |||
| Course Hours | 14 | 3 | 42 | |||
| Guided Problem Solving | 0 | 0 | 0 | |||
| Resolution of Homework Problems and Submission as a Report | 14 | 2 | 28 | |||
| Term Project | 14 | 2 | 28 | |||
| Presentation of Project / Seminar | 1 | 1 | 1 | |||
| Quiz | 0 | 0 | 0 | |||
| Midterm Exam | 7 | 3 | 21 | |||
| General Exam | 7 | 4 | 28 | |||
| Performance Task, Maintenance Plan | 0 | 0 | 0 | |||
| Total Workload(Hour) | 148 | |||||
| Dersin AKTS Kredisi = Toplam İş Yükü (Saat)/30*=(148/30) | 5 | |||||
| ECTS of the course: 30 hours of work is counted as 1 ECTS credit. | ||||||
Detail Informations of the Course
Course Description
| Course | Code | Semester | T+P (Hour) | Credit | ECTS |
|---|---|---|---|---|---|
| CAPITAL MARKETS | - | Fall Semester | 3+0 | 3 | 5 |
| Course Program |
| Prerequisites Courses | |
| Recommended Elective Courses |
| Language of Course | English |
| Course Level | First Cycle (Bachelor's Degree) |
| Course Type | Elective |
| Course Coordinator | |
| Name of Lecturer(s) | Assoc.Prof. Talat ULUSSEVER |
| Assistant(s) | |
| Aim | The aim of this course is to provide students with a general understanding of the functioning of financial markets, with a special focus on globalization and its effects on financialization. |
| Course Content | This course contains; Overview of Financial Markets,Structure and Functioning of Financial Markets,Meaning of Interest Rate Notion,Factors underlying changes in interest rate,Rısk Structure of Interest Rates,Rısk Structure of Interest Rates,Asymmetric Information: Adverse Selection and Moral Hazard,Financial Development and Economic Growth,Asymmetric Information and Financial Crises,Project Presentations,Project Presentations,Stock Market,Bond and Exchange Rate Markets,Overview of The Semester. |
| Dersin Öğrenme Kazanımları | Teaching Methods | Assessment Methods |
| 1. Will be able to express what financial markets are and why we need to study them. | 16, 6, 9 | A, G |
| 1.1. Explains why we need to understand financial markets. | ||
| 1.2. Explains why we need to understand financial institutions. | ||
| 1.3. Explains how to study financial markets and institutions. | ||
| 1.4 Explains the development of financial markets and Islamic financial markets in Turkey. | ||
| 2. Will be able to uderstand the mechanism and structure of financial markets, and gain an intuition of how financial markets and financial intermediaries affect the economy. | 16, 6, 9 | A, G |
| 2.1. Explains the function of financial markets. | ||
| 2.2. EXplains the structure of financial markets. | ||
| 2.3. Explains the globalization of financial markets. | ||
| 2.4 Explains the effect of globalization in the development of the financial markets in Turkey after 2008 global financial crisis. | ||
| 3. Will be able to explain what exactly interest rate means, and the difference between nominal and real interest rates. | 16, 6, 9 | A, G |
| 3.1. Measures and determines interest rates. | ||
| 3.2. Explains the distinction between real and nominal interest rates. | ||
| 3.3. Explains the distinction between interest rates and rates of return. | ||
| 3.4. Compares the difference between the nominal and real interest rates of conventional debt instruments with that of the nominal and real rates of return of Islamic instruments. | ||
| 4. Will be able to explain why the overall level of nominal interest rates changes and the factors that induce these changes. | 16, 6, 9 | A, G |
| 4.1. Explains the determinants of asset demand. | ||
| 4.2. Investigates the supply and demand in the bond and sukuk markets in Turkey. | ||
| 4.3 Examines the changes in equilibrium interest rates. | ||
| 5. Will be able to determine the types of interest-bearing instruments firms need to invest in by comparing the differences in the interest rates of various instruments. | 16, 6, 9 | A, G |
| 5.1. Investigates the risk structure of interest rates. | ||
| 5.2. Uses the yield curve and business cycles as a forecasting tool for inflation. | ||
| 5.3 Explains the behaviour of the yield curve in Turkey before and after the 2001 crisis and the 2008 global financial crisis. | ||
| 5.4. Forecasts interest rates using the term structure. | ||
| 6. Will be able to explain why an efficient market is needed for economic efficiency. | 16, 6, 9 | A, G |
| 6.1 Explains the efficient market hypothesis, the rationale behind the hypothesis, and the stronger version of the efficient market hypothesis. | ||
| 6.2 Examines the evidence on the efficient market hypothesis. | ||
| 6.3 Investigates the evidence in favor of and against the efficiency of capital markets in Turkey. | ||
| 6.4. Explains the connection between financial development and economic growth. | ||
| 7. Will be able to explain information asymmetry and its influence in development of financial crises. | 16, 6, 9 | A, G |
| 7.1. Expresses basic facts about the financial structure throughout the world. | ||
| 7.2. Explains the two types of information asymmetry: adverse selection and moral hazard. | ||
| 7.3. Examines the precautions Capital Markets Board of Turkey has taken to minimize the asymmetric information problems in IPO's. | ||
| 8. Will be able to explain the basic dynamics of stock markets and the resulting prices. | 16, 6, 9 | A, G |
| 8.1. Examines various aspects of investing in stocks. | ||
| 8.2 Examines and applies some methods of pricing common stocks. | ||
| 8.3. Explains how stock prices are formed in common stock markets. | ||
| 8.4 Explains common mistakes in valuation. | ||
| 9. Will be able to apply the basic principles of bond markets and foreign exchange markets. | 16, 6, 9 | A, G |
| 9.1. Explains the function of the bond market. | ||
| 9.2. Explains the actors in the bond market. | ||
| 9.3. Explains the types of bonds. | ||
| 9.4. Defines the exchange rate and explains its importance. | ||
| 9.5. Explains the exchange rate determination in the short run and in the long run. |
| Teaching Methods: | 16: Question - Answer Technique, 6: Experiential Learning, 9: Lecture Method |
| Assessment Methods: | A: Traditional Written Exam, G: Quiz |
Course Outline
| Order | Subjects | Preliminary Work |
|---|---|---|
| 1 | Overview of Financial Markets | |
| 2 | Structure and Functioning of Financial Markets | |
| 3 | Meaning of Interest Rate Notion | |
| 4 | Factors underlying changes in interest rate | |
| 5 | Rısk Structure of Interest Rates | |
| 6 | Rısk Structure of Interest Rates | |
| 7 | Asymmetric Information: Adverse Selection and Moral Hazard | |
| 8 | Financial Development and Economic Growth | |
| 9 | Asymmetric Information and Financial Crises | |
| 10 | Project Presentations | |
| 11 | Project Presentations | |
| 12 | Stock Market | |
| 13 | Bond and Exchange Rate Markets | |
| 14 | Overview of The Semester |
| Resources |
| - Financial Markets and Institutions, Frederic S. Mishkin and Stanley G. Eakins, 8th Edition, 2014. |
| - Financial Markets and Institutions, Anthony Saunders and Marcia Cornett, International Edition, 2018. |
Course Contribution to Program Qualifications
| Course Contribution to Program Qualifications | |||||||
| No | Program Qualification | Contribution Level | |||||
| 1 | 2 | 3 | 4 | 5 | |||
| 1 | (S)he describes theoretical knowledge in economics and finance. | X | |||||
| 2 | (S)he explains mathematical and statistical methods needed for economics and finance. | X | |||||
| 3 | (S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB). | ||||||
| 4 | (S)he has the foreign language proficiency necessary for economics and finance. | X | |||||
| 5 | (S)he develops projects in the field and handles team work. | X | |||||
| 6 | (S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach. | X | |||||
| 7 | (S)he uses theoretical and practical knowledge on economics and finance. | X | |||||
| 8 | (S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1. | ||||||
| 9 | (S)he adopts and uses organizational, corporate and social ethical values. | X | |||||
| 10 | (S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity. | ||||||
| 11 | (S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies. | X | |||||
| 12 | (S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field. | X | |||||
Assessment Methods
| Contribution Level | Absolute Evaluation | |
| Rate of Midterm Exam to Success | 50 | |
| Rate of Final Exam to Success | 50 | |
| Total | 100 | |