Cursos / 1º Ciclo / Faculty of Economy and Business Management :: Economics

MERCADOS FINANCEIROS - 2021/2022

3º curricular year
Semestralidade: 2nd semester
ECTS: 6

Teachers

Leading Teacher: Prof. Doutor Manuel Maçães
Assistant Professor: Prof. Doutor Manuel Maçães

Class type and School hours

Orientação Tutorial : 1 Horas
Teórico-prática : 2 Horas

Teaching Language

Portuguese

Main Aims/Objectives

This course is divided in two parts. In the first one, students are introduced to Financial Markets and to the most relevant Financial Institutions. Regarding financial markets it is studied their economic role and different segments are described. In the second part of the course, students are introduced to two highly relevant asset classes: bonds and equities.

Specific Aims/Objectives

It is studied the impact from the internationalization of Financial Markets. The most relevant financial institutions are presented: depositary institutions, insurance companies, pension funds e mutual funds. With respect to equities and bonds their main elements are presented, different subtypes, main risks, relevant topics related with their issuance and transaction in markets and valuation models.

Skills to be acquired

The purpose of this course is that students acquire theoretical and practical skills about function and operating dimensions of financial markets, specificities of different segments of financial markets, profiles and rational of different financial institutions. Students are expected to manage sound theoretical and practical skills about nature, valuation, issuance and transaction of bonds and equities.

Teaching Procedures

n the theoretical-practical classes, the expository method will be used using audiovisual media. Theoretical concepts are developed and application exercises are solved on them. In tutorial classes, students´ doubts will be clarified and case studies will be discussed to practice the acquisition of skills. As a corollary it is presented real world bond issuance and equity issuance.

Programme

1. The Financial System
1.1. Financial System Reason
1.2. The Role of Financial Markets
1.3. Financial Market and Financial System
1.4. Financial Market Segments and Types
1.5. Primary and Secondary Market
1.6. Spot Markets and Forward Markets
1.7. Financial Market Agents
1.7.1. Credit Institutions
1.7.2. Financial Companies
1.8. The Role of Financial Intermediaries
2. Financial markets
2.1. Financial Market Segmentation
2.2. Agents in the Financial Markets
2.3. Characterization of Financial Products
3. The Money Market
3.1. The Money Market and the Interbank Markets
3.2. Interbank Markets
3.2.1. Functioning of Interbank Markets
3.2.2. Main Money Market Products
3.3. The Money Market in the Eurozone
3.3.1. European System of Central Banks
3.3.2. The European Central Bank´s Monetary Policy Instruments
4. The Capital Market
4.1. The Obligations
4.1.1. Concept and Characterization of an Obligation
4.1.2. Types of Obligations
4.1.3. Public Debt Obligations
4.1.4. Valuation of Obligations: Fixed Rate and Variable Rate
4.2. The actions
4.2.1. Concept of Action
4.2.2. Capital Increase
4.2.3. Common and Preferred Shares
4.2.4. Profitability and Risk Assessment of a Share Investment
5. Issuance and Transaction of Financial Products
5.1. Primary Market
5.1.1. Concept
5.1.2. Subscription Types
5.1.3. The Primary Market in Portugal
5.2. Secondary Market
5.2.1. Secondary Market Organization
5.2.2. Main Actors in the Organization of Markets
5.2.3. Trading and Stock Exchange Orders
6. Foreign exchange market.
6.1. Characterization
6.2. Main Foreign Market Players
6.3. How the Foreign Exchange Market Works
7. Valorimetry of Financial Investments
7.1. Stock market
7.2. Stock Valuation
8. Theory of Portfolios and Theory of Portfolios
8.1. Introduction
8.2. Portfolio Theory Assumptions
8.3. Portfolio Selection and Markowitz Theory
8.4. General Portfolio Characteristics
8.5. Choosing Efficient Portfolios
9. The Market Model
9.1. Concept
9.2. Profitability and Risk Ratio
9.3. Assumptions on which the Market Model is based
10. The Capital Asset Pricing Model (CAPM)
10.1. Concept
10.2. CAPM calculation
10.3. CAPM and the Cost of Capital of the Company

Evaluation Type

Continuous assessment will consist of 2 written tests (weight 3), a group assignment (weight 2.5).
The final classification will result from the following weighting:
. Continuous assessment - 60%
. Frequency exam - 40%

Teaching Resources

Slides
Supporting texts
Bibliographic references

Sustainability Objectives

Keywords

Financial Markets
Financial Institutions
Equity
Bond

Main Bibliography

Complementary Bibliography