FB610 – Investment Industry and Fundamentals of Economics
Master of Science in Financial Services
Elective Course
FB610 – Investment Industry and Fundamentals of Economics
Course Unit Code: FB610
Type Of Unit: Elective
Level of Course Unit: Second cycle
Year of Study: First/second year
Semester: On-demand
Number of ECTS Credits: 6
Class Contact Hours: 28
Mode of Delivery
Face to Face
Prerequisites
None
Course Objectives
The objective of this course is to provide a thorough understanding of the investment industry, roles and responsibilities, the fundamentals of economics and the vital importance of ethical conduct. The course can be used for a comprehensive overview of investments and completing knowledge gaps by students from Programmes other than MSc Financial Services Programme.
Learning Outcomes
- Explain how economies benefit from the existence of the investment Industry, identify types of financial institution, describe forces that affect the evolution of the investment industry, describe the need for ethics in the investment industry.
- Describe objectives of investment industry regulation, identify elements of a company’s policies and procedures to ensure the company complies with regulation.
- Define microeconomics and describe how demand for a product or service is affected by substitute and complementary products and services; describe factors that affect quantity supplied; describe market equilibrium; describe and interpret price and income elasticities of demand and their effects on quantity and revenue.
- Define macroeconomics and describe why macroeconomic considerations are important to an investment firm and how macroeconomic information may be used; describe economic indicators and their uses and limitations; explain limitations of monetary policy and
fiscal policy. - Describe needs served by the investment industry; distinguish between buy-side and sell-side firms in the investment industry; distinguish between pooled investments, including open-end mutual funds, closed- end funds, and exchange-traded funds; describe market efficiency in terms of operations, information, and allocation.
Course Content
The Investment Industry: A Top-Down View; Ethics and Investment Professionalism
Regulation
Microeconomics
Macroeconomics, Economics of International Trade, Financial Statements, Quantitative Concept
Structure of the Investment Industry, Investment Vehicles, The
Functioning of Financial Markets
Course Features
Planned learning activities and teaching methods
Lectures; in-class discussion and debates; in-class exercises; problem sets; team work; team presentations, interactive online learning via Moodle (quizzes, assignments, forums)
Assessment methods and criteria
10% Class Participation
30% Quizzes Moodle
60% Final Exam
Language of Instruction
English
Work Placement(s)
Not applicable
Readings
Recommended or required reading
Textbooks:
1. “Fundamentals of Investing”, by Scott B. Smart and Chad J. Zutter, 14th edition, Pearson, 2020.
2. “Microeconomics”, Campbell R. McConnell, Stanley L. Brue and Sean Masaki Flynn, 20th edition, Mc Graw Hill, 2017
3. “Macroeconomics”, Campbell R. McConnell, Stanley L. Brue and Sean Masaki Flynn, 22th edition, Mc Graw Hill, 2020
4. CFA Institute materials for Investment Foundations Program
English (UK) 
Ελληνικά