Southeast University

Faculty of Business Administration

Financial Markets and Institutions
MBA Programs
Course Outlines

Course Instructor: M. Abdullah Saadi

M. Phil (IBA, DU)
MBA (IBA, DU) BA (DU)
Post Graduate Diploma in Finance (MSM, The Netherlands)
Adjunct Professor

Course Objectives:
The course is intended to provide the students with a comprehensive exposure to
the interface and dynamics of financial market and a variety of financial institutions
along with their diversified pool of instruments used in the context of financial
environment.

Text Book:
1.

Mishkin. Frederic and Eakins Stanley G. Financial Markets and Institutions, 7th

edition, Pearson Education, USA 2006. [soft copy provided]

Reference books:
1.

Madura Jeff, Financial Institutions and Markets, 7th edition, South Western

(India Edition),2006.
2. Fabozzi, Frank J.et al: Foundations of Financial Market and Institutions, 4th edition,
Pearson Education, USA, 2002.

Teaching method(s): Lectures, assignments and case studies, case presentations and
discussions an analysis of cases by students. Mainly Class Teaching, Problem Solving, Case
Study, & Presentation.
Teaching aids: Multi media Power Point presentation

Evaluation Method:
Page 1 of 4

The performance of the students will be continuously evaluated by using the methods
shown below:
Attendance
+Assignment+Participat
ion +presentation

1st Term

5+5+5+10=25

25

2nd
term

Final

25

25

Total

100
(Marks
)

Grading Policy
Numerical scores earned in each items of evaluation mentioned above will be cumulated and final
grades will be assigned as per the University rules. Please refer to the MBA prospectus for grading
scale.

Grading System
Numerical Score

GPA

Letter Grade

80 and above

4.0

A+

75 to 79

3.75

70 to 74

3.5

A-

65 to 69

3.25

B+

60 to 64

3.0

55 to 59

2.75

B-

50 to 54

2.50

C+

45 to 49

2.25

40 to 44

2.0

Below 40

0.0

Incomplete

a. Case Assignment: Students will be given case assignment which is to be read thoroughly
and discuss it in groups for class presentation.
b. Class Participation: Attendance in the classes and participation in the class discussions,
workshops, visits, class presentation etc is compulsory for all students and students will be
graded basing on these activities. A student remaining absent in the class must apply to course
teacher showing reasons with evidence which will help him attain the marks or sit for the make
up exams he/she missed.
Examinations. The examinations may consist of multiple choice, true/false, and essay
questions

which

measure

the

ability

to

know

and

apply

principles

of

good

management.
c. 1s Term: This will include the topics/chapters covered before the exam. The duration may
vary from one to one& half an hour.

Page 2 of 4

d. 2nd Term Exam: This will include the topics/chapters covered before the exam. The duration
may vary from one to one& half an hour.
e. Final Exam. The final exam is comprehensive or it may be taken from the topics covered
after the mid-Term depending on the situation.
f. Project report: In the 6th week of the course, each group of 3 students will identify a suitable
topic and present it in the class for discussion.

Basic rules of the course

a. Course Calendar: The topics, schedules, sequence and chapter reference may change.
Students are advised to know the changes from notice board or from the MBA office executives.
b. Attendance: Students are advised to read the attendance rules of the university. The rules
will be strictly followed.
c. Make up of tests/exams/assignments etc: Students are advised to read the relevant rules
of the university. The rules will be strictly followed.
d. Due dates of submission of Report/ assignments: The due dates will be announced in
the class and all students are advised to know the date and submit the reports/assignments etc
within the datelines. Each day delay will be penalized by one point even if it is a holiday.
e. Unfair means: Students are advised to read the relevant rules on the unfair- means of the
university. The rules will be strictly followed.
f. Grievance: If any grievance is there regarding the course, student is advised to write it in the
monthly feedback.

Course Contents:
1. An Overview of Financial System: Financial Market- Financial InstrumentsFinancial Institutions.
2. Financial Markets-Types of Securities/ Instruments Traded-Money Market-Capital
market-Derivative market-Market Efficiency-Financial Market Regulation-Global
Financial Market-Role of Financial Institutions in Financial Market.
3. Interest Rates Determination-Loan able Funds Theory-Economic Forces affecting
Interest Rates-Interest Rate Structure Yield across Securities- Yield Curve-Term
Structure Theories-Monetary Policy.
4. Equity Markets-Initial Public Offerings-Secondary Market Operations-Investors
Participation and Monitoring.
5. Debt Markets-Money Market Securities-Bond Markets-Govt. Bonds-Corporate
Bonds
6. Mortgage Markets-Residential Mortgages-Creative Mortgage-Institutional Use of
Mortgage Markets.
Page 3 of 4

7. Derivative Security Markets-Futures Market-Option Market-Interest Rate SwapsForex Derivative Markets.

8. Financial Institutions-Commercial Banking/BFI -Sources of Fund Uses of FundsOff-Balance Sheet Activities-Financial Statements-Bank Regulation- ALM in BanksBank Capital Management-Bank Performance Evaluation-Bank Failure.
9. Financial Institutions-NBFI -Leasing-Housing-Merchant Banking-Securities
Operations.
10. Mutual Fund Operations-Insurance and Pension Fund Operations.
[The above outline of course content may be revised]
11. Course review and Final Exam
Makeup Exam:
Makeup exams are given only for excused absences or if the student has obtained the instructor's
prior approval. If you miss an exam with a non-excused absence, you will receive a zero for the exam.
The university defines the following as excused absences: illness of the student or death of a member
of the student's immediate family; University sponsored trips; or major religious holidays. In each
foreseen case, written verification will be required at least one week before the scheduled
exam and permission to miss an exam must be secured before the scheduled exam time
unless the cause of the absence is unforeseen. IF YOU MISS AN EXAM FOR AN UNFORESEEN
REASON, YOU SHOULD CONTACT ME AS SOON AS YOU ARE PHYSICALLY ABLE TO PICK UP
THE PHONE AND CALL ME. The makeup exam will be held at one time during the week following the
regularly scheduled exam time. While the difficulty level will not differ from the regular exam, the
format of the makeup exam will be primarily essays to expedite administering and returning the exam.

Honesty: Members of the university community are expected to adhere to very high standards of honesty.
Breaches of these standards cannot be tolerated, as they insult the integrity of each of us. I assume that
everyone is honest; unless and until dishonest behavior occurs. If that unfortunate situation does occur, I
will invoke the procedures concerning Academic Misconduct as considered appropriate. Be advised that I
shall not accept ignorance of regulations and guidelines as an excuse. No student should tolerate or feel it
necessary to tolerate academic dishonesty by other students. The minimum academic penalty is an "F"
for any dishonesty (Read the Policy on students).

Page 4 of 4