Finance 300

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Financial Markets Finance 300

Transcript of Finance 300

Page 1: Finance 300

Financial MarketsFinance 300

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§Financial Markets

Final ExamMid

Term Exam

Equity Project

Bond Project

Stew #1

Stew #2

Stew #3

… … … Weekly Homework … … …

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§Identify

AssetsAssetsLiabilitiesLiabilities

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§What is it?

EquityEquity

Corporate Corporate BondBond

OptionOption

FutureFuture

SwapSwap

TreasuryTreasuryNoteNote

Commercial Commercial PaperPaper

Bankers Bankers AcceptanceAcceptance

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§Trading Conventions?

Present Present ValueValue

30/36030/360

NYSENYSE

AuctionAuction

NasdaqNasdaq

DiscountDiscount Bankers'Bankers'DiscountDiscount

a/360a/360 OTCOTC

Interest-at-MaturityInterest-at-Maturity

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§Price

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§Fair Value

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§ Finance 221 was finance for everybody§ Finance 300 is designed for those people

who will actually end up doing finance for a living.

§ You have to really love finance to face doing it 40 to 60 hours a week for the rest of your natural life.

§Finance 300

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§Trading Places

TradingPlaces_PepTalk.wmv

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§Finance 300

§ Syllabus:§ www.business.illinois.edu/broker/fin300/

§ Professor Elisabeth Oltheten§ [email protected]§ 440 Wohlers Hall

§ Office Hours§ Wed: 1:30 – 3:30pm (440 WH)§ Open Office Hours

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§ Corporate Finance (Finance 221)

§ Statistics & Econometrics (Economics 202 & 203)

§Pre Requisite Material

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§Required Tools

§ Financial Markets 2012§ Book§ On-line Access Code

§ Business Calculator TI BA II or HP 12C§ No other calculators will be permitted in the

examinations

§ Reading Material§ Wall Street Journal, Business Week, The Economist,

Investors Business Daily, anything.

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§Resources

§ Calendar & Powerpoint files§ Office Hours§ Project Kick Offs

§ Put this in your calendar nowFebruary 2@ 6:30-8pm

March 2@ 6:30-8pmMarch 14@ 6:30-8pm

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§Grades

A. Individual WorkB. Group projects

A student must pass each components separately in order to earn a passing grade for the course.

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§A. Individual Work

1. Online Homework2. Pop Quizzes3. Mid Term Exam4. Final Exam

460 points

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§A.1. Weekly Homework

§ Weekly Homework Assignments§ Practice (begins January 17)§ For Grade

120 points

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§A.1. Weekly Homework

§ Practice§ Login§ Each assignment is randomly generated from

the test bank§ Graded immediately§ You can do as many practice homework

assignments as you want

120 points

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§A.1. Weekly Homework

§ Graded§ By Friday 5pm go to the Learning Lab (36

Wohlers Hall)§ Prove your identity with your University ID Card§ The proctor will verify your login§ Same homework generation as the practice

homework but this will count for grade.§ Lowest homework grade will be dropped (best

12 of 13 homework assignments) 120 points

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§A.2. Pop Quizzes

§ Pop quizzes are given in class and are graded in class.

§ Grade is based on the best 8 of the 9,10, 11, or 12 pop quizzes given during the semester

40 points

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§A.3. Mid-term Exams

§ The mid-term exam is held during normal class period – March 2

§ Conflict exam is the previous Wednesday evening – March 1§ Check your calendar – your petition to take the conflict

must be filed before 5pm on Sunday, February 26.

120 points

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§A.4. Final Exam

§ The final exam is cumulative and held during final exam week

§ 120 points is like a second midterm and 60 points cumulative final.

180 points

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§B. Individual Work

1. Homework2. Pop Quizzes3. Mid-Term Exam4. Final Exam

5. Individual Work

6. Total

12040

120180

____460

____600

20%7%

20%30%

_____77%

_____100%

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§B. Individual Work

460 points

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§B. Group Projects

1. Equity Project2. Bond Project3. Investment Challenge

§ Points allocated are based on the Engagement Contract

40 40

60___140

140 points

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§Class Structure

§ Attendance is mandatory§ Lectures will not cover all the material in the

book.§ Bring your book and your calculator to class

every session.§ We will spend some class time in group

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§Eccentricities

§ All assignments, projects, papers, and stewardship reports are to be submitted§ In class§ To my office (440 Wohlers)

§ Anything stuffed in my mailbox in the Department of Finance is considered to be abandoned property.

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§Grades

§ Grades are neither given nor negotiated; they are earned.

§ Every time you earn points towards your final grade it is posted to the web page under your Hex number.

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§Grades

§ Spring 2016

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§Maximizing Your Grade

§ Read the material in the book for every class.

§ Work the Questions and Problems after every class.

§ Use office hours, and Practice Homework to make sure you understand both the concepts and the procedures.

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§Maximizing Your Grade

§ To study for the exam § photocopy the Chapter Questions, § cut them up, § toss them into a hat, and § pull them out at random. § Do the question under exam conditions.

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§Minimizing Your Grade

§ Skip class.§ Use sloppy math.§ Don’t read the material beforehand – after all

we’ll cover the important stuff in class anyway.

§ Assume that just because each topic is easy you can handle the exam.

2 +23.987684509

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§Minimizing Your Grade

§ The answers are on the web site - how hard can it be?

§ Read the question, outline the answer without actually doing the math, check the answer, and figure it’s pretty straightforward.

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§Classroom Etiquette

§ Class starts at 9:30:00am§ If you arrive after the class has begun then enter

through the rear door and quietly take your seat§ If an exam or pop quiz is in session then it will

be brought to you once you have taken your seat.

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§Classroom Etiquette

§ Coffee & Donuts§ Quiet food & drink only§ Clean up after yourself

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§Classroom Etiquette

§ Finance 300§ If you are doing anything but Finance 300 you

will be asked to do it elsewhere.

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§Classroom Etiquette

§ Turn off any electronic equipment not specifically needed for class§ Learn to single task successfully before you turn

to multi-tasking

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§Finance 300

§ The fun just keeps on coming…..