| CODE | BKF2071 | ||||||||||||
| TITLE | Principles of Finance | ||||||||||||
| UM LEVEL | 02 - Years 2, 3 in Modular Undergraduate Course | ||||||||||||
| MQF LEVEL | 5 | ||||||||||||
| ECTS CREDITS | 4 | ||||||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||||||
| DESCRIPTION | This study-unit provides an introduction to the foundations of the main investment areas such as equities, fixed income, foreign exchange and derivatives. It provides the basic principles on which the rest of the other study-units in Banking & Finance are based. The module deals with the theory, analysis and application of the basic theories of investment management. The course also covers the application of these investment vehicles to the general portfolio management concept. Study-Unit Aims: The study-unit aims at providing participants with an introductory course on finance. It provides first hand knowledge on finance, such as the notion of risk, how is it measuresd, the principle of risk-return, the motivation for investment and the instruments that are used to invest. It is structured over fourteen lectures of two hours each. By offering this credit, the Banking and Finance Department of the University of Malta is confident that its graduates will be well equipped to study other more in-depth courses related to banking and finance The Banking and Finance Department’s study-unit on principles of finance is unique. It is designed for students who would like to pursue a career in financial services. The principles of finance study-unit provides detailed knowledge together with practical skills so that students are able to fulfill their responsibilities more efficiently and effectively once they embark on their profession. By drawing upon international best practice, it helps prepare students to adapt to the modern financial services practitioners’ environment. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: 1. Explain the concept of shareholder value maximisation and how it applies in finance; 2. Name the various types of financial instruments used in finance and describe their main characteristics; 3. Explain how financial statements are used in finance and investment; 4. List the risks associated with each type of financial instrument; 5. Describe how investment risk analysis is conducted and its importance; 6. Explain the concept of time value of money and how it is used in finance. 2. Skills: By the end of the study-unit the student will be able to: 1. Estimate the risks that a typical investor is exposed t; 2. Rank different financial instruments in terms of potential risks and potential profit; 3. Compare the various types of financial instruments in terms of risk; 4. Evaluate investment decisions; 5. Assess a typical portfolio management strategy; 6. Describe how interest rates impact investment decisions. Main Text/s and any supplementary readings: Basic Textbook:: - Geoffrey Knott - Financial Management (Macmillan Business Masters) Further Readings: - J.Cooper - Financial Management (M&E Professional series) - J.C.Van Horne & J.M. Wachowicz- Fundamentals of Financial Management (Prentice-Hall) - Werner & Stoner - Modern Financial Managing (Harper Collins) - M.Kohn - Money, Banking, and Financial Markets.(Harcourt Brace) *Please note that this study-unit will be followed by second year students from course group 2006/2010 in Semester 1 and third year students from course group 2005/2009 in Semester 2 |
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| STUDY-UNIT TYPE | Lecture | ||||||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Steve Ellul |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2024/5. It may be subject to change in subsequent years. |
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