FIN 350 Module 1 readings

FIN 350 Module 1 readings - FIN 350 An Introduction to...

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FIN 350 An Introduction to Financial Markets Readings Read chapters 1, 2, and 3 in Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace . Read "Evaluating the Relative Strength of the U.S. Capital Markets" by Peristiani, from Current Issues in Economics and Finance (2007), located in the GCU eLibrary at http://library.gcu.edu:2048/login?url=http://search.ebscohost.com/login.aspx? direct=true&db=bth&AN=26266311&loginpage=Login.asp&site=ehost- Explore the Yahoo! Finance Web site at http://finance.yahoo.com/marketupdate?u . In particular, familiarize yourself with the data this site provides regarding up to date trends in the market. Go to the textbook website http://highered.mcgraw- hill.com/sites/0073405167/student_view0/index.html and download all the student supplementary materials for each chapter. Save them in a separate file folder on your hard drive so you can reference them as needed. These resources include powerpoint slides, chapter summaries, practice quizzes, and glossary of terms and definitions. Introduction This lecture discusses some of the characteristics of financial markets in the U.S. economy. It also describes the important role that markets play in a capitalist system. Also, this lecture discusses three properties of markets that are not fully appreciated by most people, yet which have far-reaching implications for everyone. Market Efficiency The single most important characteristic of financial markets is market efficiency. Efficient markets are markets in which (a) all information that is known about a particular security is incorporated into its market price and (b) as new information becomes available, the existing market price of that security adjusts immediately and completely. A broad cross-section of financial markets is efficient, including the stock market, the bond market, the market for government securities, and most overseas capital markets in the developed world.
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This note was uploaded on 02/18/2012 for the course FIN 350 taught by Professor Na during the Winter '10 term at Grand Canyon.

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FIN 350 Module 1 readings - FIN 350 An Introduction to...

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