Introduction to Finance The Role of Financial Markets

In Introduction to Finance: The Role of Financial Markets, you will be introduced to the basic concepts and skills needed for financial managers to make informed decisions. With an overview of the structure and dynamics of financial markets and commonly used financial instruments, you will get crucial skills to make capital investment decisions. With these skills, you will be ready to understand how to measure returns and risks and establish the relationship between these two. The focus of this course is on basic concepts and skill sets that will have a direct impact on real-world problems in finance. The course will enable you to understand the role of financial markets and the nature of major securities traded in financial markets. Moreover, you will gain insights into how to make use of financial markets to create value under uncertainty.

• Understand and apply the time value of money in order to value financial and real asset investments, and to make investment decisions.

• Master capital allocation across time, with an ability to analyze capital budgeting problems in a firm.

• Understand the basics of measuring risk and return and the trade-offs.

Syllabus

Syllabus - What you will learn from this course
Week 1
Course Orientation
Module 1: Bond Valuation
In this course, you will be introduced to the basic concepts and skills needed for financial managers to make informed decisions. With an overview of the structure and dynamics of financial markets and commonly used financial instruments, you will get crucial skills to make capital investment decisions. With these skills, you will be ready to understand how to measure returns and risks, and establish the relationship between these two. The focus of this course is on basic concepts and skill sets that will have a direct impact on real-world problems in finance. The course will enable you to understand the role of financial markets and the nature of major securities traded in financial markets. Moreover, you will gain insights into how to make use of financial markets to create value under uncertainty.
Week 2
Module 2: Stock Valuation
In this module, you will be introduced to basic terms of bonds: coupons, face value, coupon rate, maturity, and yield to maturity. You will be presented with the ways to value level-coupon bonds and zero-coupon bonds. You will learn why companies would like to have their bonds rated, and what the factors are that determine the bond ratings. You will also identify the structure of bond market and the major players of the bond market.
Week 3
Module 3: Capital Budgeting
In this module, you will learn the basics of stock valuation. You will be presented with the fundamentals of stock market structure, and how companies issue stocks in the market. In addition to that, you will explore the different types of stocks, including common stocks and preferred stocks. You will also identify/find how to get real-time information of individual stocks, and how to read stock quotes.
Week 4
Module 4: Risk and Return
This module is the application of the capital budgeting process. First, you will learn/encounter/see/be exposed to some common scenarios when we evaluate which cash flow should be accounted for in the capital budgeting analysis. Then, you will be introduced to the treatment of after-tax salvage value and accelerated depreciation schedule. This information will be combined to determine whether a project is worthwhile to explore or not. You will also discuss the impact of inflation on capital budgeting decisions. As a result, this module will help you establish a big picture of the company’s investment decisions.

FAQ

When will I have access to the lectures and assignments?

Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:

What will I get if I purchase the Certificate?

When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

Is financial aid available?

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

Reviews

It helped me understand the terminology and valuation of bonds. I preferred to read the transcript, but videos are also a good option.

Great content on the financial markets and a solid format to learn the fundamentals on this subject matter.

Great course! Everything is clearly explained and the instructor is great. Thank you for offering this course.

it was an amazing experience. Professor Xi has covered most of the important aspects of financial markets in this MOOC.