Capital markets and global perspectives

Increasingly the tentacles of globalisation are drawing investors - corporate, and specialist funds - into the arena of global capital markets. Such markets are used to exchange assets and raise new funds.

The nature and complexities of such markets requires a degree of specialist knowledge and understanding. The impacts of the 2008 financial crises have resulted in amended and new regulation and compliance in the context of risk, and this legacy requires engagement and understanding.

Topics covered

Main topics of the module include:

• Purpose(s) and nature(s) of global capital markets and of financial actors
• Nature and application of economic theory: rationality and profit maximisation; information asymmetry; moral hazard; adverse selection
• Global perspectives on the risk- return trade-off
• Identify the main financial actors in capital markets, describe and comparatively critique the interests of market actors
• Understand drivers for an international market to gather together financial actors to exchange capital.

Learning outcomes

On successful completion of this module, you will be expected to be able to:

• Identify the main financial actors in capital markets, describe and comparatively critique the interests of market actors.
• Understand drivers for an international market to gather together financial actors to exchange capital.
• Identify, describe and comparatively assess the characteristics and their strengths and weaknesses of financial instruments used by financial actors that exchange capital in the contexts of generating returns and risk.
• Understand and critique the rationale that underpins government intervention in the markets.
• Understand and assess how regulation and compliance can lead to unintended consequences.

Assessment

• Coursework: up to 3,000 words; weighted at 100%