FB615 – Investment Instruments and Market Participants
Master of Science in Financial Services
Elective Course
FB615 – Investment Instruments and Market Participants
Course Unit Code: FB615
Type Of Unit: Master of Science in Financial Services
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 fundamentals of investment instruments, investment management, serving client needs and industry controls. 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
- Describe features of debt securities; describe the discounted cash flow approach to valuing debt securities; explain the relationship between a bond’s price and its yield to maturity; explain risks of investing in debt securities; define a credit spread.
- Describe features of equity securities; describe types of equity securities; compare risk and return of equity and debt securities; describe approaches to valuing common shares; describe company actions that affect the company’s shares outstanding.
- Define a derivative contract; describe uses of derivative contracts; describe key terms of derivative contracts; describe forwards and futures; distinguish between forwards and futures; describe options and their uses; define swaps and their uses; describe advantages and limitations of alternative investments; describe private equity, real estate and commodity investments.
- Describe the importance of identifying investor needs to the investment process; identify, describe, and compare types of individual and institutional investors; describe the rationale for and structure of investment policy statements in serving client needs; describe how portfolios are constructed to address client investment objectives and constraints; explain factors necessary for successful active management;
- Define risk and identify types of risk; describe risk management functions; describe uses of benchmarks and explain the selection of a benchmark; explain measures of relative performance, including tracking error and the information ratio; describe document classification systems; describe types of internal and external documentation; describe principles of document management.
Course Content
Debt Securities
Equity Securities
Derivatives and Alternative Investments
Investors and Their Needs; Investment Management
Risk Management; Performance Evaluation; Investment Industry Documentation
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 in Moodle
60%: Final Exam
Language of Instruction
English
Work Placement(s)
Not applicable
Readings
Recommended or required reading
Textbooks:
“Fundamentals of Investing”, by Scott B. Smart and Chad J. Zutter, 14th edition, Pearson, 2020. CFA Institute materials for Investment Foundations Program
English (UK) 
Ελληνικά