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An introduction to financial markets and institutions

Course

Financial Economics

7.5 credits

Spring

100%

Campus

This course is an introduction to how financial markets and institutions are organised and how trading in financial instruments works, as well as how to apply theoretical models to real data observations. The course also introduces the pricing and basic investment strategies for derivative instruments, such as options and forward contracts.

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Tools and knowledge for analysing important societal issues After studying Economics, you can work in both the public and private sectors, for national or international organisations, with issues relating to the economics of society. In the private sector, it is common for economists to work at banks or in companies in the financial sector. However, economists may also work at consultancies or other companies that require socio-economic expertise. In the public sector, you could work at government ministries, public authorities, municipalities or the Swedish Riksbank. Studying Economics gives you important, societally beneficial knowledge. After your studies, you will have the tools and knowledge necessary to analyse important societal issues Studying Economics is not only a strength on the labour market, but it also provides an important general education for understanding our societal economy. Read about research in this subject
An introduction to financial markets, trading, institutions and instruments The aim of this course is to provide an introduction to the way that financial markets and institutions are organised, and how trading in financial instruments works. The most fundamental instruments, bonds, shares and derivatives, are studied in detail with focus on how they are priced in the markets and the factors that affect this. This requires theoretical insight into the thinking of individual savers, or investors, when balancing risks and returns. Theoretical portfolio models, such as CAPM, provide insight into the balance between risk and return. Another aim of the course is that you will learn to apply these theoretical models to real data observations. In this context, index models and the enlargement of those models, known as multi-index models, are used and discussed. The course ends with an introduction to pricing and basic investment strategies for derivative instruments, such as options and forward contracts, where you will learn to calculate and explain design strategies for using derivative instruments. Course design The course is taught through lectures, though some group work may be required in addition. There is a written examination.
How can we manage sparse resources and work towards sustainable economic growth? Economics is important for societal democracy, as the purpose of the subject is to investigate how we manage and distribute sparse resources. The subject therefore has a strong link to most of the UN global goals. Economics has a broad perspective that covers many societal functions, everything from conditions for businesses and employees to those for sustainable development and the role of the financial market in global stability. Economics covers many different areas and has clear links to many current societal problems. Studying the subject provides insight into environmental economics, development economics, financial economics, industrial organisation, labour market economics and various theories of international trade. These areas are strongly associated with current societal problems such as trade wars and globalisation, unemployment and integration, poverty and opportunities for development in low-income countries. If you study Economics, you will gain important societal knowledge that is beneficial on the labour market, as well as tools for analysing important societal problems. At Södertörn University, our aim is to teach the subject using a broad perspective and an unconditional approach.