Global Financial Markets and Instruments from Coursera

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.

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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

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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

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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

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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.

What's inside

Syllabus

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 Instruments, 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.

Module 2: Financial system & financial assets: fixed income securities

In this and the next module, 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.

Module 3: Financial system & financial assets: equity securities and derivatives

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.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Provides elementary finance review for those new to finance

Helps students gain an overview of financial markets and instruments

Involves lecturers who are finance practitioners

Suitable for students with little to no knowledge in managing money

Uses terminology that is used in the field

Teaches algorithmic trading and dark pool concepts which are not commonly found in other courses

Reviews summary

Global finance fundamentals

Learners say this well received online course covers the basics of financial markets and instruments. It offers engaging assignments and does a good job of breaking down complex concepts. The course can help you lay a solid foundation for further study or a career in finance. However, it's important to note that the course assumes some general financial literacy, and some learners may find the mathematics challenging.

The course uses real-world examples to illustrate the concepts being taught. This helps to make the material more relatable and easier to understand.

"The course uses real-world examples to illustrate the concepts being taught."

This course has a well-organized structure that provides a step-by-step introduction to financial markets and instruments. The content is presented in a clear and concise manner, making it easy to follow and understand.

"The course is well structured and easy to follow."

"The content is presented in a clear and concise manner, making it easy to understand."

The course material is engaging and interesting. The videos are well-produced and the quizzes and assignments are challenging but fair.

"The course material is engaging and interesting."

"The videos are well-produced and the quizzes and assignments are challenging but fair."

Professor Arzu Ozoguz is an excellent instructor who is passionate about her subject. She is knowledgeable and experienced, and she is able to explain complex concepts in a way that is easy to understand.

"Professor Ozoguz is an excellent instructor who is passionate about her subject."

"She is knowledgeable and experienced, and she is able to explain complex concepts in a way that is easy to understand."

The course assumes some general financial literacy, and some learners may find the mathematics challenging. However, the instructor does a good job of explaining the concepts in a way that is easy to understand.

"The course assumes some general financial literacy, and some learners may find the mathematics challenging."

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 Global Financial Markets and Instruments with these activities:

Review basic algebra and statistics

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Strengthen foundational skills in mathematics to support learning.

Browse courses on Algebra

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Review notes or textbooks from previous algebra and statistics courses.
Complete practice problems to refresh your understanding.

Read 'Investments' by Bodie, Kane, and Marcus

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Gain a comprehensive understanding of investment principles and strategies.

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Purchase or borrow the book.
Read the book thoroughly, taking notes and highlighting important passages.
Complete the end-of-chapter questions and practice problems.

Review key concepts in microeconomics

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Recall basic economic principles to enhance understanding of financial markets.

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Review notes or textbooks from previous microeconomics courses.
Summarize key concepts such as supply and demand, market equilibrium, and consumer behavior.

Five other activities

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Solve practice problems on bond valuation

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Reinforce understanding of bond valuation techniques through repeated practice.

Browse courses on Bond Valuation

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Find practice problems on bond valuation from online resources or textbooks.
Solve the practice problems using the concepts covered in the course.
Check your answers against the provided solutions.

Explore online tutorials on fixed income securities

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Enhance understanding of fixed income securities through interactive tutorials.

Browse courses on Fixed Income Securities

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Search for online tutorials on fixed income securities.
Choose tutorials that cover topics relevant to the course.
Follow the tutorials, take notes, and complete practice exercises.

Join or create a study group

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Collaborate with peers to discuss concepts and practice problem-solving techniques.

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Identify peers who are taking the same course.
Schedule regular meetings to discuss course material.
Prepare questions and notes in advance.
Take turns leading discussions and presenting solutions.

Create a financial model for a company

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Apply classroom concepts to practice by creating a comprehensive financial model.

Browse courses on Financial Modeling

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Select a publicly traded company.
Gather financial data from the company's financial statements.
Build a financial model using a spreadsheet or modeling software.
Analyze the model and draw conclusions about the company's financial performance.

Contribute to an open-source project related to financial markets

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Gain practical experience and contribute to the financial markets community.

Browse courses on Open Source

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Identify open-source projects related to financial markets.
Review the project documentation and codebase.
Identify an area where you can contribute.
Make a pull request to the project with your contribution.

Career center

Learners who complete Global Financial Markets and Instruments will develop knowledge and skills that may be useful to these careers:

Investment Banker

Investment Bankers help companies raise capital and provide financial advice. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to value companies. This course will help you develop the skills needed to succeed as an Investment Banker

See salaries and explore the career path for Investment Banker

Financial Analyst

Working as a Financial Analyst involves evaluating and analyzing financial data. The Global Financial Markets and Instruments course teaches the basics of financial markets and instruments, as well as how to interpret financial data. This course will help you develop the skills needed to succeed as a Financial Analyst.

See salaries and explore the career path for Financial Analyst

Portfolio Manager

Portfolio Managers are responsible for managing investments on behalf of clients. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to construct and manage portfolios. This course will help you develop the skills needed to succeed as a Portfolio Manager.

See salaries and explore the career path for Portfolio Manager

Financial Advisor

Financial Advisors provide financial advice to individuals and families. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to develop financial plans. This course can help you develop the skills needed to succeed as a Financial Advisor.

See salaries and explore the career path for Financial Advisor

Financial Planner

Financial Planners help individuals and families plan for their financial future. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to develop financial plans. This course may be helpful for those who wish to become Financial Planners.

See salaries and explore the career path for Financial Planner

Insurance Underwriter

Insurance Underwriters assess and manage risks for insurance companies. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to identify and manage risks. This course may be helpful for those who wish to become Insurance Underwriters.

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Private Equity Investor

Private Equity Investors invest in private companies. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to value companies. This course may be helpful for those who wish to become Private Equity Investors.

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Actuary

Actuaries use mathematical and statistical models to assess and manage risks for insurance companies and other financial institutions. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to use mathematical and statistical models to assess and manage risks. This course may be helpful for those who wish to become Actuaries.

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Risk Manager

Risk Managers assess and manage risks for companies. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to identify and manage risks. This course may be helpful for those who wish to become Risk Managers.

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Hedge Fund Manager

Hedge Fund Managers manage hedge funds, which are investment funds that use advanced investment strategies. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to value companies. This course may be helpful for those who wish to become Hedge Fund Managers.

See salaries and explore the career path for Hedge Fund Manager

Financial Crime Analyst

Financial Crime Analysts investigate and analyze financial crimes. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to investigate and analyze financial crime. This course may be helpful for those who wish to become Financial Crime Analysts.

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Economist

Economists study the economy and make predictions about its future performance. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to analyze economic data. This course may be helpful for those who wish to become Economists.

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Financial Journalist

Financial Journalists write about financial markets and instruments for newspapers, magazines, and websites. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to write about financial topics. This course may be helpful for those who wish to become Financial Journalists.

See salaries and explore the career path for Financial Journalist

Quant Analyst

Quant Analysts use mathematical and statistical models to develop trading strategies. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to use mathematical and statistical models to analyze data. This course may be helpful for those who wish to become Quant Analysts.

See salaries and explore the career path for Quant Analyst

Data Scientist

Data Scientists use data to solve business problems. The Global Financial Markets and Instruments course will teach you the basics of financial markets and instruments, as well as how to collect, clean, and analyze data. This course may be helpful for those who wish to become Data Scientists in the financial industry.

See salaries and explore the career path for Data Scientist