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Global Financial Markets and Instruments

Approx. 20 hours to complete

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Course Summary

This course provides an overview of global financial markets and the instruments used in them. Topics covered include stocks, bonds, currencies, and derivatives.

Key Learning Points

Gain a comprehensive understanding of global financial markets and the instruments used in them
Learn about the risks and benefits of investing in different financial instruments
Explore the impact of global events on financial markets

Learning Outcomes

Understand the major financial instruments used in global markets
Analyze the risks and benefits associated with different investment strategies
Evaluate the impact of global events on financial markets

Prerequisites or good to have knowledge before taking this course

Basic understanding of finance
Familiarity with financial terminology

Course Difficulty Level

Intermediate

Course Format

Online
Self-paced

Similar Courses

Financial Markets
Investment Management

Related Education Paths

Related Books

Description

Get a running start in the high-stakes world of financial investment! This first course is designed to help you become an informed investor by providing you with the essential concepts for long-term success in managing money.

You’ll start by learning the role of financial markets and financial assets in a well-functioning economy. From there, you’ll learn about the wide range of financial instruments available in major asset classes, their features and valuations. You’ll explore how financial markets actually operate in the real world, focusing on how and where securities are traded and how various market types differ from one another in practice. You will also learn the basics of algorithmic trading, dark pools, buying on margin and short selling. By the end of the course, learners will be able to: • List and distinguish the different financial instruments available to an investor • Compare global financial markets • Explain the features of equity, debt, and derivative instruments • Define traditional and alternative asset classes • Discuss different trading venues and mechanics of securities trading • Discuss the current trends affecting today’s financial markets This course is designed to be accessible for students of all knowledge levels and gives you the actionable foundation needed to manage money in a post-crisis world. ________________________________________ WEEK 1 Module 1: Introduction & Review of Elementary Finance Tools This module introduces the Investment and Portfolio Management Specialization, which is made up of four courses. This module discusses how the first course, Global Financial Markets and Assets, is organized. It outlines the different stages of the investment management process, which guides the focus of the Specialization. It also reviews basic finance concepts and tools such as time value of money, computing returns, discounting and compounding. Topics covered include: • Familiarize with the organization of the class • Meet the professor and your peers • Explain the investment management process • Review elementary concepts in finance • Compute present value or future value of a single cash flow • Compute present value of future value of a stream of cash flows • Define an annuity or perpetuity • Apply time value of money tools to solve basic mortgage, loan or retirement problems ________________________________________ WEEK 2 Module 2: Financial system & financial assets: fixed income securities In this and the next two modules, we cover the key institutional features of financial markets and instruments. We ask the following questions: Why do financial markets exist? What role do they play? What are financial assets and how are they different than real assets? How does it all come together? Basically, this is where I hope you will get to see the big picture of the entire financial system and how it comes together. Module 2 focuses on fixed income securities. We'll get started with a review of basics of bond valuation. You will learn about short-term money market instruments, U.S. Treasury securities as well as corporate bonds. After module 2, you will be able to describe fixed income securities, be familiar with their institutional features, and identify their cash flows. Finally, you will learn how to value fixed income securities such as Treasury bills, zero-coupon or coupon-bonds and compute yields. Topics covered include: • Explain the roles of financial markets • Distinguish between real and financial assets • Define and explain money market instruments, zero-coupon and coupon- bonds and features • Identify the cash flows associated with fixed-income securities • Define and explain bond market features • List the different types of Treasury securities and explain pricing and quoting conventions • List and define other long-term debt instruments such as corporate bonds, mortgage-backed securities, sovereign debt • Find the value of a zero-coupon or coupon-bonds ________________________________________ WEEK 3 Module 3: Financial system & financial assets: equity securities and derivatives In Module 3, we continue our overview of financial markets and instruments. We next focus on two other major asset classes: equity securities and derivative instruments. You will learn about how equity differs from fixed income securities, the cash flows associated with stock and preferred stock and how to find the value of a share. You will also learn about option strategies. After completing module 3, you will be able to describe all major asset classes, including derivative instruments such as options, forwards and futures. You will be able to explain how these differ from each other and their payoffs. Topics covered include: • Distinguish between equities and fixed income securities • Define and explain the features of equity securities • Identify the cash flows associated with equity securities • Explain dividend discount model • Find the value of a share of common stock or preferred stock • Define and list different types of derivative securities • Explain option payoffs • Distinguish between a forward and futures contract • Explain forward and futures payoffs • Identify traditional and alternative asset classes ________________________________________ WEEK 4 Module 4: Organization of financial markets and securities trading In this module, we discuss how financial markets actually work. We will talk about different trading venues and the mechanics of securities trading. I will emphasize a lot of terminology and the latest trends in securities trading to familiarize you with the institutional workings of financial markets. After this module, you will be able to compare different trading venues, trading mechanisms, and be able to explain different types of orders, including transactions like margin buying and short- selling; you will be familiar with the language and terminology you need in order to become an informed practitioner of investments. Topics covered include • Explain the roles of corporations, households, government, and financial intermediaries in the financial system • Explain price discovery process • Define different type of orders • Distinguish between dealer vs. auction markets; different trading platforms • Explain margin buying and short-selling transactions • Understand the current trading environment such as algorithmic or high frequency trading, dark pools etc.

Outline

Module 1: Introduction & Review of Elementary Finance Tools
Introduction and welcome to the class
Meet the Professor!
What is the investment management process?
Back to basics (Part 1.1): What is time value of money?
Back to Basics (Part 1.2): Finding the future value of a cash flow
Back to Basics (Part 1.3): Finding the present value of a cash flow
Back to basics (Part 2.1): What are annuities?
Back to basics (Part 2.2): Annuities example: Retirement problem
Back to basics (Part 2.3): Finding the present value of annuities
Back to basics (Part 2.4): Annuities Example: Loan Problem
Back to basics (Part 3.1): Computing the effective annual interest rate
Back to basics (Part 3.2): Computing an effective rate over any period
Back to basics (Part 3.3): Examples, examples, and more examples
Back to basics (Part 3.4): Computing continuously compounded rates
Back to basics (Part 4.1): Valuing perpetuities and growing perpetuities
Back to basics (Part 4.2): Valuing growing annuities
Using elementary finance tools – Summary
Course syllabus
Meet & Greet: Get to know your classmates
Grading Policy
How to use discussion forums
Pre-Course Survey
Lecture handouts: Review of Elementary Finance Tools Part 1
Review of Elementary Finance Tools Part 1- Quiz Solutions
Lecture handouts: Review of Elementary Finance Tools Part 2
Review of Elementary Finance Tools Part 2- Quiz Solutions
Lecture handouts: Review of Elementary Finance Tools Part 3
Review of Elementary Finance Tools Part 3- Quiz Solutions
Lecture handouts: Review of Elementary Finance Tools Part 4
Review of Elementary Finance Tools Part 4- Quiz Solutions
Review of Elementary Finance Tools- Graded Quiz Solutions
Listen to Bloomberg's Masters in Business: Interview with Vanguard CEO Bill McNabb
Review of Elementary Finance Tools Part 1
Review of Elementary Finance Tools Part 2
Review of Elementary Finance Tools Part 3
Review of Elementary Finance Tools Part 4
Module 1: Review of Elementary Finance Tools

Module 2: Financial system & financial assets: fixed income securities
Introduction: The role of financial markets as a time machine
A primer on financial assets
Basics of bond valuation - Part 1
Basics of Bond Valuation Part 2
Money market instruments
Calculating U.S. Treasury bill prices
U.S Treasury securities
Other long-term debt instruments
Summing up fixed income securities
Lecture handouts: A primer on financial assets
A primer on financial assets- Quiz Solutions
Lecture handouts: Basics of bond valuation
A note on bond valuation
Basics of Bond Valuation- Quiz Solutions
Lecture handouts: Money market instruments
Federal Reserve Bank's Open Market Operations (optional)
Calculating Treasury Bill Prices- Quiz Solutions
Lecture handouts: Long-term debt instruments
Long-term debt instruments- Quiz Solutions
Financial Assets: fixed income securities- Graded Quiz Solutions
A primer on financial assets
Basics of Bond Valuation
Calculating Treasury Bill Prices
Long-term debt instruments
Module 2: Financial assets - fixed income securities

Module 3: Financial system & financial assets: equity securities and derivatives
Equity Securities
Basics of equity valuation
Derivative securities: Overview
Derivative Securities: Options
Derivative securities: Futures and forward contracts
Traditional vs. alternative asset classes
Summing Up equities and derivatives
A note on equity valuation
Lecture handouts: Equity securities
Equity Securities- Quiz Solutions
Lecture handouts: Derivative securities
A note on option payoffs
An illustration of a foreign currency forward contract
Derivative Securities- Quiz Solutions
Global Alternatives Survey (optional)
Financial assets: Equities and Derivatives- Graded Quiz Solutions
Equity Securities
Derivative securities
Module 3: Financial assets - Equities and derivatives

Module 4: Organization of financial markets and securities trading
Overview – Market structure: where rubber meets the road
Major players in financial markets
Primary and secondary markets
Types of order
Margin transactions
Short sales
New trends in securities trading
Summary
Roaring ahead: ETFs have overtaken hedge funds as an investment vehicle (optional)
ETFs Report: A market driven by 'speculators' (optional)
Lecture handouts: Organization of financial markets
Organization of financial markets- Quiz Solutions
Market declines: What is accomplished by banning short-selling? (Optional)
What caused the Flash Crash? (optional)
Lecture handouts: Trading mechanics
Trading Mechanics- Quiz Solutions
Organization of Financial Markets and securities trading: Graded Quiz Solutions
End-of-Course Survey
Organization of financial markets
Trading mechanics
Module 4: Organization of financial markets and securities trading

Summary of User Reviews

Learn about global financial markets and their instruments with this comprehensive course on Coursera. Students consistently praise the course's engaging and knowledgeable instructors, who provide valuable insights and practical advice to help learners navigate the complexities of modern finance.

Pros from User Reviews

Instructors provide valuable insights and practical advice
Course covers a wide range of topics related to global financial markets and instruments
Materials are well-organized and easy to follow
Quizzes and assignments help reinforce key concepts and ensure understanding
Flexible schedule allows learners to study at their own pace

Cons from User Reviews

Some users found the course to be too basic or introductory
Discussion forums can be overwhelming or difficult to navigate
Some assignments require extensive research or outside reading
Videos and lectures can be lengthy and time-consuming
Course may not provide enough in-depth analysis or case studies for some learners

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