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Robert Shiller

An overview of the ideas, methods, and institutions that permit human society to manage risks and foster enterprise. Emphasis on financially-savvy leadership skills. Description of practices today and analysis of prospects for the future. Introduction to risk management and behavioral finance principles to understand the real-world functioning of securities, insurance, and banking industries. The ultimate goal of this course is using such industries effectively and towards a better society.

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What's inside

Syllabus

Module 1
Welcome to the course! In this opening module, you will learn the basics of financial markets, insurance, and CAPM (Capital Asset Pricing Model). This module serves as the foundation of this course.
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Module 2
In this next module, dive into some details of behavioral finance, forecasting, pricing, debt, and inflation.
Module 3
Stocks, bonds, dividends, shares, market caps; what are these? Who needs them? Why? Module 3 explores these concepts, along with corporation basics and some basic financial markets history.
Module 4
Take a look into the recent past, exploring recessions, bubbles, the mortgage crisis, and regulation.
Module 5
Options and bond markets are explored in module 5, important components of financial markets.
Module 6
In module 6, Professor Shiller introduces investment banking, underwriting processes, brokers, dealers, exchanges, and new innovations in financial markets.
MODULE 7
Professor Shiller's final module includes lectures about nonprofits and corporations, and your career in finance.

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Provides an overview of financial risk analysis and risk assessment, which are crucial skills for professionals in the financial industry
Covers key concepts and theories in insurance finance, which are essential for understanding how insurance companies operate and mitigate risks
Introduces students to fundamental risk management principles and practices for different financial instruments and institutions
Designed for students with a basic background in finance, providing a solid foundation for further studies or a career in the finance industry
Offers practical insights and real-world case studies to enhance students' understanding of the interconnectedness of financial markets
Led by Robert Shiller, a renowned Nobel laureate known for his groundbreaking work in behavioral finance

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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 Financial Markets with these activities:
Read 'The Intelligent Investor' by Benjamin Graham
Enhance your understanding of investment strategies by studying a classic work in the field.
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  • Purchase or borrow a copy of 'The Intelligent Investor'.
  • Read the book thoroughly.
  • Take notes and highlight important passages.
Practice CAPM
Review the basics of CAPM to strengthen your foundation in financial markets.
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  • Review the formula for CAPM.
  • Calculate CAPM for a given stock.
  • Interpret the results of CAPM.
Compile a list of financial resources
Organize and expand your financial knowledge by compiling a collection of valuable resources.
Browse courses on Finance
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  • Identify and gather relevant financial resources.
  • Categorize and organize the resources.
  • Create a digital or physical compilation.
Five other activities
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Learn about different types of stocks
Expand your knowledge of stocks by exploring the various types available in the market.
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  • Follow a tutorial on the different types of stocks.
  • Research specific stocks that interest you.
Solve behavioral finance problems
Enhance your understanding of behavioral finance concepts by solving practice problems.
Browse courses on Behavioral Finance
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  • Identify the behavioral biases at play in a given scenario.
  • Predict how these biases might affect investment decisions.
Discuss recent trends in financial markets
Enhance your understanding of current financial trends by engaging in discussions with peers.
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  • Join a study group or online forum.
  • Participate in discussions about recent financial events.
  • Share your insights and learn from others.
Attend a workshop on risk management
Gain practical knowledge of risk management strategies by attending a dedicated workshop.
Browse courses on Risk Management
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  • Identify a relevant risk management workshop.
  • Register and attend the workshop.
  • Actively participate in the workshop activities.
Develop a financial plan for a non-profit organization
Apply your knowledge of financial management to a real-world scenario by creating a financial plan for a non-profit organization.
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  • Research the non-profit organization.
  • Identify the organization's financial needs.
  • Develop a financial plan that meets the organization's needs.
  • Present your financial plan to the non-profit organization.

Career center

Learners who complete Financial Markets will develop knowledge and skills that may be useful to these careers:
Financial Analyst
A Financial Analyst will analyze financial data, providing insights and recommendations to clients. This course is an ideal resource for this career field because it provides a solid framework for understanding the fundamentals of financial markets. This includes methods for assessing risk, forecasting trends, and making strategic investments. This course is especially relevant to the career field because it focuses on the functioning of securities, insurance, and banking industries. Completing it can help build the skills needed to make effective financial decisions.
Investment Banker
Investment Bankers assist companies in raising capital and help guide them through mergers and acquisitions. This course provides a foundational knowledge that can help aspiring Investment Bankers succeed in this demanding field. The course covers important financial market concepts, such as underwriting processes, brokers, and dealers. The understanding of these concepts gained from this course can be a valuable asset, particularly in leading roles in the field.
Portfolio Manager
Portfolio Managers oversee investments for individuals and organizations, making decisions that impact the financial well-being of their clients. This course is highly relevant to the role as it provides a solid understanding of financial markets and the factors that influence investment decisions. The course also covers the basics of risk management, which is crucial for Portfolio Managers who must navigate market volatility and protect their clients' assets.
Risk Manager
Risk Managers identify, assess, and mitigate financial risks for organizations. This course can help aspiring Risk Managers develop a strong foundation in the principles and practices of risk management. The course covers topics such as risk assessment, forecasting, and insurance, which are all essential for success in this field. By taking this course, individuals can gain the knowledge and skills needed to proactively manage risks and protect their organizations.
Financial Advisor
Financial Advisors provide financial guidance and advice to individuals and families. This course is beneficial to aspiring Financial Advisors because it provides a broad overview of financial markets, investment strategies, and risk management. It also emphasizes the development of financially-savvy leadership skills essential for success in the field.
Actuary
Actuaries use mathematical and statistical techniques to assess risk and uncertainty. This course may be useful for aspiring Actuaries as it provides a solid foundation in financial markets and risk management principles. The course covers topics such as insurance, forecasting, and pricing, which are all relevant to the actuarial field.
Insurance Agent
Insurance Agents sell insurance policies to individuals and businesses. This course may be useful for aspiring Insurance Agents as it provides an overview of the insurance industry and the different types of insurance products available. It also covers the basics of risk management and financial planning, which are both important for success in this field.
Loan Officer
Loan Officers assist individuals and businesses in obtaining loans. This course may be helpful for aspiring Loan Officers as it provides a foundation in financial markets and lending practices. The course covers topics such as credit analysis, loan structuring, and risk management, all of which are relevant to this role.
Financial Planner
Financial Planners help individuals and families manage their finances and plan for the future. This course may be useful for aspiring Financial Planners as it provides an overview of financial markets, investment strategies, and retirement planning. It also emphasizes the development of financially-savvy leadership skills, which are important for success in this field.
Stockbroker
Stockbrokers buy and sell stocks and other securities for clients. This course may be useful for aspiring Stockbrokers as it provides a foundation in financial markets and investment strategies. The course covers topics such as portfolio management, risk assessment, and financial analysis, all of which are relevant to this role.
Auditor
Auditors examine and verify financial records to ensure accuracy and compliance. This course may be useful for aspiring Auditors as it provides a foundation in accounting principles and financial reporting. The course covers topics such as financial statement analysis, internal controls, and auditing procedures, all of which are relevant to this role.
Compliance Officer
Compliance Officers ensure that organizations comply with applicable laws and regulations. This course may be useful for aspiring Compliance Officers as it provides an overview of financial markets, regulatory frameworks, and compliance best practices. The course covers topics such as risk management, ethics, and corporate governance, all of which are relevant to this role.
Market Research Analyst
Market Research Analysts conduct research to gather information about markets, customers, and competitors. This course may be useful for aspiring Market Research Analysts as it provides a foundation in market research techniques and data analysis. The course covers topics such as survey design, data collection, and market segmentation, all of which are relevant to this role.
Economist
Economists study the production, distribution, and consumption of goods and services. This course may be helpful for aspiring Economists as it provides an overview of financial markets, economic principles, and econometric methods. The course covers topics such as macroeconomic analysis, monetary policy, and international trade, all of which are relevant to this role.
Quantitative Analyst
Quantitative Analysts use mathematical and statistical models to analyze financial data and make investment decisions. This course may be useful for aspiring Quantitative Analysts as it provides a foundation in financial markets, econometrics, and data analysis. The course covers topics such as portfolio optimization, risk management, and algorithmic trading, all of which are relevant to this role.

Reading list

We've selected 13 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Financial Markets.
Must-read for anyone who wants to understand the psychology of financial markets. Shiller argues that financial markets are often driven by irrational exuberance and that this can lead to bubbles and crashes.
Classic in the field of investing and provides a comprehensive overview of the principles of value investing. It is particularly useful for those who are new to investing or who want to learn more about the fundamentals of the stock market.
Explores the role of uncertainty in financial markets. Taleb argues that we are often too quick to dismiss the possibility of rare events and that this can lead to disastrous consequences.
Reference book that provides a comprehensive overview of risk management. Hull covers a wide range of topics, including risk measurement, risk management techniques, and financial regulation.
Is another classic in the field of investing and provides a more in-depth look at the principles of value investing. It more technical book than The Intelligent Investor, but it is still accessible to those who are not experts in finance.
Reference book that provides a comprehensive overview of fixed income securities. Fabozzi covers a wide range of topics, including bond mathematics, credit analysis, and portfolio management.
Reference book that provides a comprehensive overview of equity investments. Fabozzi covers a wide range of topics, including stock valuation, portfolio management, and derivatives.
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Reference book that provides a comprehensive overview of behavioral finance. Thaler covers a wide range of topics, including cognitive biases, emotional decision-making, and behavioral economics.
Provides a unique perspective on financial markets from one of the world's most successful hedge fund managers. Soros discusses the importance of reflexivity and how it can lead to bubbles and crashes.
Short and simple guide to investing for the long term. Bogle argues that the best way to invest is to stay diversified and keep your costs low.

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