| Code: | LGE2337 | Acronym: | IMFIN |
| Teaching Area: | Management |
| Acronym | Study plan | Curriculum Years | ECTS | Contact hours | Total Hours |
|---|---|---|---|---|---|
| LGE | Aviso n.º 9752/2017, de 23 de agosto | 3º | 4 ECTS | 48 | 106 |
| Theoretical-Practical: | 32,00 |
| Seminário: | 0,00 |
| Other: | 0,00 |
| Theoretical-Practical: | 32,00 |
| Seminário: | 0,00 |
| Other: | 0,00 |
| Theoretical-Practical: | 32,00 |
| Seminário: | 0,00 |
| Other: | 0,00 |
Teaching - Hours
|
Microsoft Office PowerPoint
Microsoft Office Excel
Portuguese
DESCRIPTIVE SUMMARY OF CURRICULAR UNIT
The Financial Markets and Instruments aims to prepare the students with knowledge in the field of financial investments and their assessment of profitability and risk.
OBJECTIVES AND EXPECTED RESULTS OF LEARNING
1. Know the main financial markets
2. Know the main stock exchanges
3. Evaluate and characterize the main financial instruments
4. Assess the risk of a financial investment
5. Evaluate the performance of a portfolio
COMPETENCES TO DEVELOP
The student should be able to:
Know the main financial markets
Define the best short, medium and long-term investment option, using appropriate valuation techniques;
Understanding the risk and return concept of a financial instrument and an investment portfolio
1. INTRODUCTION
1.1 Motivation
1.2 Definition and function of financial markets
1.3 Segmentation of financial markets
1.4 Internationalization of the financial markets
1.5 Brief characterization of financial instruments
2. STOCK EXCHANGE
2.1 World Stock Exchanges
2.2 Stock market indices
2.3 Financial instruments traded on Stock Exchanges
2.4 Sessions on Stock Exchanges
2.5 Orders on Stock Exchanges
2.6 Negotiations Systems
3. SHARE MARKET
3.1 Definition and Types of Shares
3.2 Yield and Risk
3.3 Terminology
3.4 Operations on Share
3.5 Evaluation of Shares
4. BOND MARKET
4.1 Concept
4.2 Yield and Risk
4.3 Terminology
4.4 Modalities of Bonds
4.5 Evaluation of Bonds
5. OTHER FINANCIAL INSTRUMENTS
5.1 Derivatives
5.1.1 Definitions, general characteristics and usefulness of derivatives
5.1.2 Forward Contracts
5.1.3 Future
5.1.4 Options
5.1.5 Swaps
5.1.6 Contract for Difference - CFD
5.1.7 Other derivatives
5.2. Investment Funds
5.2.1 Concepts and Terminology
5.2.2 Types of Funds
5.2.3 Profitability and Risk
6. YIELD, RISK AND DIVERSIFICATION
6.1 Yield and Risk of an asset
6.2 Yield and Risk of a Portfolio
6.3 Diversification
6.4 Types of risk
7. CAPITAL MARKET MODEL
7.1 Capital Asset Pricing Model (CAPM)
7.2 Arbitrage Pricing Theory (APT)
7.3 CAPM vs. APT
The first objective "Know the main financial markets" is addressed in chapter 1 of the program, where all types of financial markets are characterized and segmented. The 2nd objective "Know the main stock exchanges" is explored in the second chapter, which presents the main financial markets, types of sessions, stock exchange orders and trading systems. The third objective " Evaluate and characterize the main financial instruments " is developed in Chapters 3, 4 and 5. Financial instruments such as stocks, bonds, investment funds, derivatives (swaps, options, CDF, CDS, among others) are dressed. In chapters 5 and 6, topics such as risk and portfolio evaluation are developed to meet objectives 4 and 5.
| Pires, Cesaltina;Mercados e Investimentos Financeiros, Escolar Editora, 2011 |
| Brealey, Richard A. e Myers, Stewart C.;Princípios de Finanças Empresariais, McGraw-Hill, 2008 |
| Vieito, João P.; Maquieira, Carlos P.;Finanças Empresariais, Teoria e Prática, Escolar Editora, Escolar Editora, 2013 |
| Mota, Gomes António; Barroso, Clementina Dâmaso; Nunes, João Pedro; Ferreira, Miguel Almeida;Finanças da Empresa, Edições Sílabo, 2012 |
The subject matter has an essentially practical character. However, there are several concepts and methodologies in need of a theoretical approach. Therefore, there will be two types of classes: essentially theoretical classes, in which the aforementioned concepts and methodologies will be learned, and essentially practical classes, in which the resolution of practical cases will occupy most of the time, although attention will also be given to the various ways used by financial managers to solve the problems they meet. The reading of books that will help to analyse the introduced concepts and methodologies, and the study of practical cases that will help observe the way in which the problems that came up during the decision making were solved, will be essential learning elements. Computer media, such as Microsoft PowerPoint software, are used to present programmatic content, and Microsoft Excel is used for solving exercises.
Avaliação distribuída com exame final
| Description | Type | Time (hours) | Conclusion Date |
|---|---|---|---|
| Attendance (estimated) | Lessons | 30 | |
| Participação Presencial | 3 | ||
| Trabalho laboratorial ou de campo | 15 | ||
| Teste/Exame | 3 | ||
| Study | 55 | ||
| Total: | 106 |
Written exam: 100%.
In order to achieve the objectives described above, the classes include the presentation of theoretical contents where the Microsoft PowerPoint program is used. In the application of the contents taught, students are offered practical cases and exercises and in "PDF" format. For the resolution of some exercises will be used the program Microsoft Excel.