Introduction to Finance: The Role of Financial Markets from Coursera

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Syllabus

Course Orientation

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.

Module 1: Bond 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.

Module 2: Stock Valuation

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.

Module 3: Capital Budgeting

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.

Module 4: Risk and Return

In this module, you will review the historical record of return and risk for major categories of financial instrument, and reveal that there exists a trade-off between risk and return. You will also learn how to calculate return and risk based on the real data collected from financial markets. The trade-off between risk and return reveals that investors should set reasonable expectations of return based on their risk preferences.

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Examines basic concepts and skill sets that will have a direct impact on real-world problems in finance

Well-structured with clear modules covering key aspects of finance, including bond valuation, stock valuation, capital budgeting, and risk and return

Suitable for beginners seeking an introduction to financial markets and decision-making

Reviews summary

Finance course with practical knowledge

Learners say this top-rated finance course is engaging and practical. Many reviewers praise the real-world examples and challenging assignments created by the amiable Professor Gautam Kaul. Students recommend this course for those seeking a solid introduction to financial markets.

Professor Kaul is highly praised for his charisma and teaching skills.

"Professor Xi has covered most of the important aspects of financial markets in this MOOC."

"Great experience! Very challenging and practice driven class. Prof Kaul is so charismatic and gifted educator, that learning becomes so interesting!"

"Excellent class, very informative and fun to watch. Professor Kaul is outstanding instructor."

A few learners criticize the instructor for sometimes providing unclear explanations.

"The professor routinely gets off on tangents and then makes unhelpful remarks like, "I'm teaching you the fundamentals," without bothering to give any motivation or derivation for where any of the formulas come from."

"In the quizzes, the questions didn't always clearly explain all of the details, or explained them in a misleading way."

Some students feel that this course lacks sufficient real-world examples.

"There is a dearth of examples on how to apply the principles learned in class, which then makes the assignments all the more difficult."

"Homework does not mirror what is happening in the lectures, which consequently forces students to surf the web looking for other resources."

Learners should expect to dedicate several hours per week to this course.

"The way the course is structured allows me to accomplish the necessary work within my schedule. There is usually about 1-2 hours of video lectures divided into roughly 20 minutes chunks, followed by a assignment that takes another 2 hours."

"I had forgotten much of what I learned 3 weeks earlier."

Several learners mention that some exams may be difficult to pass.

"I couldn't make it at 3rd, and they don't give you the answers so you don't have a chance to learn on your mistakes."

"The correct answers were never provided for the quizzes, which you could only take twice."

"The quizzes, and the course itself, lacked rigor."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Introduction to Finance: The Role of Financial Markets with these activities:

Study Notes and Resources

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Reinforce your understanding by organizing and reviewing course materials.

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Attend lectures and take comprehensive notes.
Review your notes after each lecture.
Summarize key concepts and create flashcards.
Organize your study materials into a logical structure.

Capital Budgeting Analysis

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Enhance your skills in evaluating the financial viability of investment projects.

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Identify online tutorials on capital budgeting analysis.
Follow the tutorials and complete the practice exercises.
Apply the techniques to real-world investment scenarios.

Bond Valuation Calculations

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Strengthen your ability to calculate bond values and make informed investment decisions.

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Gather data on bonds, including coupon rates, maturities, and yields to maturity.
Use financial calculators or online tools to calculate bond prices.
Compare the calculated bond prices with market prices.
Analyze the factors that affect bond prices.

Three other activities

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Discussion Forum Participation

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Engage with peers to enhance your understanding and gain diverse perspectives.

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Join the course discussion forum.
Read and respond to questions and discussions.
Share your own insights and experiences.
Collaborate with peers on group projects or assignments.

Stock Market Simulation

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Develop a hands-on understanding of stock trading and investment strategies.

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Join an online stock market simulation platform.
Research and select stocks to invest in.
Monitor stock prices and make trading decisions.
Track your portfolio performance and make adjustments.
Analyze your trading strategies and identify areas for improvement.

Financial Risk and Return Analysis

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Develop practical skills in assessing and managing financial risks.

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Gather data on financial instruments and their historical performance.
Calculate returns and risks using statistical techniques.
Plot the risk-return relationship and identify optimal investment strategies.
Create a presentation or report summarizing your findings.

Career center

Learners who complete Introduction to Finance: The Role of Financial Markets will develop knowledge and skills that may be useful to these careers:

Portfolio Manager

Portfolio Managers need a mastery of financial markets and securities, which is exactly what the course Introduction to Finance: The Role of Financial Markets is designed to teach. The course covers the different types of stocks, bonds, and other securities, and provides the tools to evaluate risk and return. This foundational knowledge will equip learners to make the informed and profitable decisions expected of Portfolio Managers.

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Financial Analyst

To be a successful Financial Analyst, one must understand how to make financial decisions - precisely what Introduction to Finance: The Role of Financial Markets teaches. The course will help build a foundation for making sound investment decisions, and help you understand the connection between risk and reward. The review of the historic record of performance and evaluation of different risk/return profiles is directly relevant to the day to day of a Financial Analyst.

See salaries and explore the career path for Financial Analyst

Financial Risk Manager

Financial Risk Managers must make informed decisions about risk in order to protect their organizations. Introduction to Finance: The Role of Financial Markets is a great resource for building the skills needed to assess risk and reward, as well as learning how to make sound capital investment decisions.

See salaries and explore the career path for Financial Risk Manager

Financial Advisor

Advisors need to understand the basics of financial markets, as well as the risks and rewards of different strategies. Introduction to Finance: The Role of Financial Markets provides this foundation, giving learners the ability to help clients reach their financial goals. The course also covers topics such as capital budgeting and portfolio management, which are essential for financial advisors.

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Financial Planner

Financial Planners help individuals and families plan for their financial futures. Introduction to Finance: The Role of Financial Markets is a great resource for gaining the knowledge needed to develop effective plans, including topics like capital budgeting, risk and return, and the valuation of stocks and bonds.

See salaries and explore the career path for Financial Planner

Actuary

Actuaries use their knowledge to assess risk in order to set insurance premiums. Introduction to Finance: The Role of Financial Markets provides a vital foundation for the skills required to make sound judgments, especially the portions dealing with risk and return, as well as bond and stock valuation.

See salaries and explore the career path for Actuary

Investment Banker

As an Investment Banker, understanding financial markets is a crucial part of the job, which includes a comprehensive understanding of bonds and stocks, everything Introduction to Finance: The Role of Financial Markets is designed to build. The course covers bond and stock valuation, which are directly relevant to the role, but also includes the impact of inflation on capital budgeting decisions, which is a long term perspective Bankers need to have.

See salaries and explore the career path for Investment Banker

Economist

Economists analyze economic data and trends to make predictions about the future. Introduction to Finance: The Role of Financial Markets is a supplemental course that can help teach the basics of financial markets, which can provide context and relevance to an Economist's work, especially the parts on economic factors influencing the markets.

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Auditor

Auditors can benefit from taking Introduction to Finance: The Role of Financial Markets to gain a better understanding of the financial markets that their clients operate in, and to learn how to evaluate risk and return. The course also covers topics such as capital budgeting and portfolio management, which are relevant to the work of auditors.

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Credit Analyst

Credit Analysts evaluate the creditworthiness of borrowers to help lenders make informed decisions. Introduction to Finance: The Role of Financial Markets provides a foundation for understanding financial markets, and the skills to assess risk and make sound investment decisions, making it a valuable course for these professionals.

See salaries and explore the career path for Credit Analyst

Market Researcher

Market Researchers may find Introduction to Finance: The Role of Financial Markets a helpful supplement, particularly the portions on stock and bond valuation. The course provides an overview of financial markets, which can help researchers understand the context of the markets they are researching.

See salaries and explore the career path for Market Researcher

Insurance Underwriter

Insurance Underwriters may find Introduction to Finance: The Role of Financial Markets a helpful resource, as it provides an overview of financial markets, and covers topics such as risk and return. This knowledge can be beneficial for underwriting decisions.

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Data Analyst

Data Analysts may benefit from taking Introduction to Finance: The Role of Financial Markets to gain a better understanding of the financial markets, which can be a source of data for their analysis. The course also covers topics such as risk and return, and capital budgeting, which can be relevant to the work of data analysts.

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Quantitative Analyst

Quantitative Analysts could benefit from taking Introduction to Finance: The Role of Financial Markets to gain a better understanding of the financial markets. The course covers topics such as risk and return, and capital budgeting, which can be relevant to the work of these professionals.

See salaries and explore the career path for Quantitative Analyst

Financial Software Engineer

Financial Software Engineers may find Introduction to Finance: The Role of Financial Markets a helpful supplement to their knowledge, especially the portions on bond and stock valuation. The course provides an overview of financial markets, which can help Engineers understand the context of the markets for which they are developing software.

See salaries and explore the career path for Financial Software Engineer