Course Description
This course provides an in-depth look at the structure, function, and regulation of financial markets. Students will explore equity, debt, and derivative markets, understand how capital flows through the global financial system, and evaluate the impact of monetary policy and global events on financial instruments and institutions. (3 credits)
Prerequisites
- ACC 101: Financial Accounting
- ACC 102: Managerial Accounting
- BUS 201: Business Statistics (or equivalent)
- ECO 103: Macroeconomics OR ECO 104: Microeconomics
- ENG 101: English Composition 1
- ENG 102: English Composition 2
- FIN 210: Financial Management
Program Learning Outcomes (PLOs)
- Apply the concepts, theories, and relationships among the functional areas of an organization, including the ability to explain the nature and construct of an organization.
- Design strategic marketing practices. This will include such areas as marketing research, consumer behavior, customer acquisition and retention strategies, and public relations. Additional areas include digital marketing including SEO techniques, social media strategies, leveraging artificial intelligence for targeted marketing campaigns, and driving brand loyalty.
- Explain the global environment of business including the political, social, and intercultural sensitivities that exist in society that are important to the development of meaningful relationships and success in business and in life.
- Demonstrate professional business behavior, social responsibility, and ethical decision making and conduct.
- Demonstrate effective critical thinking, decision-making, problem solving, organizational leadership, teamwork; oral and written communication skills utilizing tools such as AI, research databases, and other tools as required.
Student Learning Outcomes (SLOs)
Students who successfully complete this course will be able to:
- Explain the roles of major market participants and regulatory mechanisms.
- Analyze drivers of capital flows and the effects of monetary and fiscal policy.
- Create basic security valuation and sensitivity analyses.
- Design basic hedging strategies using futures and options.
- Construct a simple portfolio aligned with stated investment objectives and risk tolerances.
- Interpret financial statements and identify reporting red flags.
- Assess regulatory reforms and lessons from financial crises.
Course Activities and Grading
| Assignments | Points | Weight |
|---|
Discussion Initial Posts and Responses (Weeks 1-7) | 350 | 35% |
Weekly Papers (Weeks 1-7) | 350 | 35% |
Final Paper (Week 8) | 300 | 30% |
Total Points | 1000 | 100% |
Required Textbook
There is no text required. This course uses Open Educational Resources (OER). OER are openly licensed, educational resources that can be used for teaching, learning, and research. OER may consist of a variety of resources such as textbooks, videos, and software that are no cost for students.
Course Schedule
Week | PLOs | SLOs | Readings and Exercises | Assignments |
1 | 2,5 | 1,2,3 | Topics: Financial Market Foundations and Capital Allocation - The Basis of Capital Allocation in a Financial Ecosystem
- Structure and Function of the Federal Reserve
- Role of Banks and Regulation
- Read and Review:
- Principles of Economics
- The Federal Reserve - The Fed Explained
- Who We Are
- Monetary Policy
- Financial Stability
- Supervision & Regulation
- Payment Systems
- Consumers & Communities
- Banking & Money Creation
- Intro to banking (video)
- Multiplier effect and the money supply (video)
- Reserve ratios and lending limits (video)
| - Read assigned material
- Review the lecture material
- Participate in discussions
- Submit Paper 1 Assignment
|
2 | 2,3,5 | 1,2,7 | Topics: Commercial Operators and Market Intermediaries - Asset Managers
- Commercial Banks and Non-Bank Intermediaries
- Broker-Dealers and Trading Firms
- Insurance Companies
- Read and Review:
- Financial Institution Overview
- Bank & “Non-Bank” Organizations
- Investment Banks vs Commercial Banks (video)
- Nonbank Financial Intermediation (NBFI or “Shadow Banking”) and Capital Markets Policy
- Investment Organizations
- How Investment Management Firms Work: An In-Depth Exploration
- How Insurance Companies Profit: A Detailed Business Model Guide
- Traders vs Dealers vs Brokers (video)
| - Read assigned material
- Review the lecture material
- Participate in discussions
- Submit Paper 2 Assignment
|
3 | 2,5 | 3,4 | Topics: Financial Instruments: Primary, Derivative and Alternative Assets - Stock, Bonds and Exchange Traded Funds
- Derivatives (futures, swaps, and options)
- Currency
- Other Asset Classes (private equity, infrastructure, real estate, etc.)
- Read and Review:
- Stocks and Bonds
- Bonds vs. Stocks (video)
- Chapter 10
- Chapter 11
- How Does an ETF Work? Structure and Price Mechanics
- ETF Creation and Redemption: How the Mechanism Works
- Derivatives & Currencies
- What are Derivatives? – Intro for Aspiring Quants (video)
- Sections 4.1-4.5: Foreign Exchange Markets and Rates of Return
- Alternative Asset Classes
- Comparing Real Estate and Infrastructure in a Portfolio Context
- Private Equity: Beyond the "storytelling"
- What is private credit? Does it pose financial stability risks?
| - Read assigned material
- Review the lecture material
- Participate in discussions
- Submit Paper 3 Assignment
|
4 | 2,3,5 | 1,2 | Topics: Capital Formation, Policy and Macroeconomic Catalysts - Capital Flows and Economic Indicators
- Role of Banks and the Federal Reserve
- Monetary and Fiscal Policy – Implications and Impacts
- Fractional Reserves and the Money Multiplier Effect
- Read and Review:
- Key Economic Indicators
- Macroeconomics: Crash Course Economics #5 (video)
- Role of Banks and the Federal Reserve
- The History of the Federal Reserve
- Section 27.3: The Role of Banks & Section 27.4: How Banks Create Money
- Monetary and Fiscal Policy
- Monetary Policy and the Fed (video)
- Monetary Policy: The Best Case Scenario (video)
- Introduction to Fiscal Policy (video)
- Fiscal Policy: The Best Case Scenario (video)
- The Money Multiplier Effect
- Expansion of the Money Supply – How does the Money Multiplier Work? (video)
| - Read assigned material
- Review the lecture material
- Participate in discussions
- Submit Paper 4 Assignment
|
5 | 2,5 | 3,4,5 | Topics: Investment Management, Return Foundations and Asset Allocation - Security Valuation and Analysis
- Investment Return and Risk
- Portfolio Management Function
- Asset Allocation Concepts
- Read and Review:
- Investing Foundations
- Chapter 15
- Expected Return
- Growth vs Value Investing (video)
- Portfolio Management Theory
- Modern Portfolio Theory (MPT)
- Efficient Frontier
- Markowitz Model and Modern Portfolio Theory – Explained (video)
- Asset Allocation Considerations
- Asset Allocation - Strategic vs Tactical (video)
- The economy, markets, and our diversified portfolios
| - Read assigned material
- Review the lecture material
- Participate in discussions
- Submit Paper 5 Assignment
|
6 | 2,5 | 1,6 | Topics: Financial Reporting, Capital Budgeting and Corporate Metrics - Role of Accounting & Financial Statements
- Company Financial Reporting – Analysis and Implications
- Cash Flow Estimation and Capital Budgeting
- Corporate Metrics
- Read and Review:
- Accounting and Financial Statements
- Chapter 2
- Section 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements - Volume 1: Financial Accounting
- Section 3.2: Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions - Volume 1: Financial Accounting
- Capital Budgeting and Corporate Forecasting
- Chapter 2
- Chapter 3
- Module 9
- Company Public Reporting
- How to Read an Earnings Report (video)
| - Read assigned material
- Review the lecture material
- Participate in discussions
- Submit Paper 6 Assignment
|
7 | 2,3,5 | 1,7 | Topics: Financial Market Regulation, Stability and Systemic Crises - Regulatory Structure in U.S. and Globally
- Supervisory Organizations’ Scope & Roles
- Stability and Investor Confidence
- Lessons and Outcomes of Financial Crises
- Read and Review:
- Regulatory Frameworks
- Financial Regulation
- Understanding Financial Regulations: safeguarding the financial system
- Introduction to Financial Services: International Regulation
- Financial Crises Review & Federal Reserve History
- The Great Depression
- The Great Inflation
- Savings and Loan Crisis
- The Great Recession
- Tracking the Recovery from the Pandemic Recession - Summary & Part I
| - Read assigned material
- Review the lecture material
- Participate in discussions
- Submit Paper 7 Assignment
|
8 | 2,3,5 | 1,3,4,5,7 | Topic: Two Contemporary Market Debates - Active vs Passive (Index) Investing – Pros & Cons
- Public vs Private Market Companies Considerations
- Read and Review:
- Active vs Index Investing
- Passive Investing vs Active Investing: Which Approach Offers Better Returns?
- The Active Vs Passive Investing Debate (video)
- Sharpe’s Arithmetic and the Risk Matters Hypothesis
- Active vs. Passive Fund Performance: When Do Active Managers Win?
- Public vs Private Companies
- The Difference Between Public and Private Companies (video)
- How A Company Benefits from the Stock Market (video)
- Why Companies Are Staying Private Longer?
- Startups are staying private longer thanks to alternative capital
| - Read assigned material
- Review the lecture material
- Submit Final Paper Assignment
- Complete Course Evaluation
|
COSC Accessibility Statement
Charter Oak State College encourages students with disabilities, including non-visible disabilities such as chronic diseases, learning disabilities, head injury, attention deficit/hyperactive disorder, or psychiatric disabilities, to discuss appropriate accommodations with the Office of Accessibility Services at OAS@charteroak.edu.
COSC Policies, Course Policies, Academic Support Services and Resources
Students are responsible for knowing all Charter Oak State College (COSC) institutional policies, course-specific policies, procedures, and available academic support services and resources. Please see COSC Policies for COSC institutional policies, and see also specific policies related to this course. See COSC Resources for information regarding available academic support services and resources.
