Accounting and Finance
Principles of Finance
Module code: N1560
15 credits in autumn semester
Teaching method: Lecture, Seminar
Assessment modes: Coursework, Computer based exam
You are introduced to financial markets, instruments and concepts.
You are given an overview of the roles of different financial institutions, and the products they most commonly provide and trade.
During the module you discuss historical events in the financial markets and how this illustrates their importance in the wider economy.
You focus on finance concepts related to equity and bond markets, beginning with:
- interest rates
- time value of money
- present value.
Other topics include:
- LIBID and LIBOR
- cost of capital
- bid ask spreads
- no-arbitrage relationships, for example between stocks and futures or forwards.
You are also given an insight into the idea of hedging with derivative products.
Module learning outcomes
- Demonstrate knowledge of the core principles of finance, the most common financial institutions, products and markets, and show an understanding of financial concepts widely used in decision-making.
- Analyse a financial problem, or issue, using an appropriate theoretical framework, and present financial ideas, concepts and information using means appropriate to the audience and the problem.
- Describe the fundamental concepts relating to interest rate markets, such as the yield curve.
- Understand why financial markets require that all participants operate to high ethical standards in order to achieve the mutual trust required for their smooth and efficient functioning.