Swinburne Business School,

Faculty of Business and Law

Unit Outline
FIN80004
Capital Markets
Semester 1, 2015 (BLOCK MODE)

Please read this Unit Outline carefully. It includes:

PART A

Unit summary

PART B

Your Unit in more detail

PART C

Further information

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PART A:

Unit Summary

Unit Code(s)

FIN80004

Unit Title

Capital Markets

Duration

One teaching period

Total Contact Hours

36 hours

Requisites:
Pre-requisites

Nil

Co-requisites

n/a

Concurrent pre-requisites

FIN80005

Anti-requisites

n/a

Assumed knowledge

n/a

Credit Points

12.5 Credit Points

Campus/Location

Hawthorn

Mode of Delivery

Delivery is in 3 hour evening sessions or 5 hour

block delivery sessions. Total student workload is
120 hours.

Assessment Summary

Assignment (Group) 15-20%

Presentation (Individual) 10%-15%
Test (Individual) 20%-25%
Examination (Individual) 50%-60%

Aims
This unit provides students with the skills and expertise to identify the different types of financial
institutions who operate in the market, together with the various sources of funds available within
capital markets. The unit will also enhance students ability to identify a financial problem and
critically analyse and interpret financial data.

Unit Learning Outcomes

1. Demonstrate advanced knowledge of the structure and functions of financial markets.
2. Critically analyse the mechanisms that operate within the Australian and International capital
and financial markets.
3. Critically analyse choices of financing available to individuals, small business and corporations.
4. Demonstrate advanced knowledge of various financial concepts to the media coverage of
financial issues.
5. Apply problem solving methodology to the operation of equity and debt markets and
demonstrate how conditions and prices are determined in major financial markets.
6. Communicate proficiently in professional practice to a wide variety of audiences and operate as
an effective member of a diverse team.

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Generic Skills Outcomes

This unit aims to achieve the following in our students:

Teamwork skills
Analysis skills
Problem solving skills
Ability to tackle unfamiliar problems
Ability to work independently
Ability to consider local and international environments

Content

Introduction to money and financial markets

The banking sector and non-bank financial intermediaries
Regulation of financial intermediaries
Sources of finance - short, medium and long term; international debt markets
The share market as a source of equity for corporations
Government debt, monetary policy and the payment system
Interest rate determination and forecasting
Interest rate risk management

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PART B:

Your Unit in more detail

Unit Improvements
Feedback provided by previous students through the Student Survey has resulted in improvements
that have been made to this unit. Recent improvements include:

Wiki
Listed Company Group Assignment
Interim Progress Report

Unit Teaching Staff

Name
Dr Sarod
Khandaker

Role

Campus &
Room No.

Convenor
and Lecturer

BA 1035

Phone
No.
92148456

Email Address

Consultation
Times

skhandaker@swin.edu.au

By
Appointment

Learning and Teaching Structure

Activity

Total Hours

Hours per Week

(block mode)

Teaching Period
Weeks

Lectures

18 hours

3 hours

Weeks 1 to 6

Tutorials

18 hours

3 hours

Weeks 1 to 6

Week by Week Schedule

Teaching
Week

Date Beginning

14th March,
2015

Lecture Topic
Review of fundamental concepts in finance
and accounting
Overview of financial system
The Monetary Authority
Reserve Bank of Australia

28th March,
2014

18th April, 2015

Lecture Topic Readings

Kidwell, Chapter 1
Kidwell, Chapter 2
Kidwell, Chapter 3

Reserve Bank of Australia

Kidwell, Chapter 3

The Level of Interest Rates

Kidwell, Chapter 4

Commercial Banking Operations

Kidwell, Chapter 14

Non-Banking Financial Institutions

Kidwell, Chapter 15

Bond Price and Interest Rates

Kidwell, Chapter 6

Bond Market

Kidwell, Chapter 9

Revision for the Midterm Examination

Interim progress Report

Presentation and
progress discussion

(Chapter 1, 2, 3, 4, 13, 14 and 5)

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Teaching
Week

Date Beginning

2nd May, 2015

Lecture Topic

Lecture Topic Readings

Mid Semester Test (Chapter 1, 2, 3, 4, 13,

14 and 5)

Kidwell, Chapter 8

Money Markets
Equity markets
5

Kidwell, Chapter 10
(Final Assignment
Submission)

16th May, 2015

Investors in Share Markets

Viney, Chapter 6

30th May, 2015

Sustainability and the Financial Sector

Kidwell, Chapter 19

Revision

All topics

Final presentation

Reserve day for Final

Presentation

Assessment
a)

Assessment Overview
Individual
or Group

Weighting

Unit Learning
Outcomes that this
assessment task
relates to

1. Listed Company
Assignment (Submission)

Group

20%

All

16th May, 2015

(Class No 5)

2. Presentation and Class

Participation

Individual

10%

4 and 5

Interim progress
Report
18th April, 2015
Final Presentation:
30th May, 2015
(Class No 6)

3. Test

Individual

20%

All

2nd May, 2015

4. Examination

Individual

50%

All

Formal Exam Period

Tasks and Details

Assessment Due
Date

NOTE 1:
Specific assessment criteria for each assessment task can be found on the Blackboard site for this
Unit. Students must retain all assessed material that contributes to the final result up until such
time as the final results are published. Please Note:

No dictionary is permitted in Mid Semester Test and in the Final Examination.

Students can only use simple, non-programmable/ financial calculator (such as

SHARP ELS-735) in final examination, lectures/tutorials and class TEST. We strongly
recommend students to use financial calculator for this unit.

Programmable calculator (such as TI-83 Plus, TI-30X) will NOT BE ALLOWED in Final
examination and/or Class TEST.

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NOTE 2: Presentation and Class Participation

2.1. Class participation and Tutorial Discussion [5%]:
Assessment details:
To gain a high grade, students need to attend tutorials regularly with their weekly tutorial work
completed and be prepared to discuss questions and show their answers on the board if
requested. The quality of your answers and contributions in tutorials also matter. It is to your
advantage to volunteer and participate actively in tutorial discussion.

The grading criteria are shown in the table below:

Grade
5 marks

Explanation
Very regular attendance. Volunteers to answer questions. Contributes to tutorial
discussion consistently and actively with insightful comments. Well-prepared to
show answers to questions on the board when requested.

4 marks

Regular attendance. Answers questions in class and contributes to tutorial

discussions actively. Generally prepared for tutorials.

3 marks

Regular attendance, with some contribution to tutorial discussion and some

preparation for tutorials.

2 marks

Fairly consistent attendance, with little contribution to tutorial discussion.

1 marks

Poor attendance, with little or no contribution to tutorial discussion.

2.2. Presentation (individual/group) [5%]:

Each group will prepare a short presentation of the Listed Company Assignment to the tutorial
class.

The presentation schedule, which will be decided by your tutor, will be finalized before Week
11 of the Semester. Each team will present to the tutorial group at an appointed time during
the last week. It is your groups responsibility to ensure that you have been allocated a timeslot for the presentation. Please stick to the schedule once it is finalized. If your group fails to
show up during the allocated time-slot for any reason, everyone in the group will receive a zero
for oral presentation.

Group presentations are designed to encourage collaborative work. All group members must
participate in the presentation. In addition, all presenting members must dress in
professional manner.

Time allowed for tutorial presentation: 12 minutes. Your tutor and the rest of the class may
ask you questions and give comments at the end of your presentation, and you are expected to
respond to them. There will be 3 additional minutes for questions and answers.

Please note that no additional time will be given for the presentation and groups will be
penalised for using additional time.

It is your responsibility to ensure that the equipment used for the delivery of your oral
presentation is in working condition. Having hard copy transparencies as a form of back-up is
a good idea. You should also save an extra copy of your presentation slides on a CD or USB
drive. Students who fail to present during their time-slot as a result of equipment failure or
computer crashes will be penalized.
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Grade
5 marks

Explanation
Accurate and highly relevant content, very clear and succinct presentation.
Strongly demonstrates the ability to answer questions convincingly. Highly
professional visual aids. Constantly maintains eye contact with the audience
and is highly engaging.

4 marks

Very clear presentation of the main points using professional visual aids.
Communicates very well with the audience and is engaging. Answers
questions clearly.

3marks

Generally clear, accurate and relevant points.

general.

2 marks

Satisfactory presentation. Some attempt to engage the audience. There may

also be some problems in English expression.

1 marks

Unsatisfactory presentation. Incoherent and generally unclear. No attempt

made to communicate with the audience.

Engages the audience in

b) Minimum requirements to pass this Unit

To pass this unit, you must achieve:
1. must attempt each assessment tasks in order to eligible for the final exam including class
attendance.
2. at least 45% of the possible final marks for each Assessment Component,
3. an aggregate mark for the subject of 50% or more.
If you do not achieve at least 45% of the possible final marks for Each Assessment
Component, you will receive a maximum of 44% as your total mark for the unit
concerned.
c)

Examinations
If the unit you are enrolled in has an official examination, you will be expected to be available
for the entire examination period including any Special Exam period.
The final exam covers the whole semesters work.
No dictionary is permitted in this examination.
Programmable calculator (such as TI-83 Plus, TI-30X) will NOT BE ALLOWED in Final
examination and/or Class TEST.
The exam emphasises the application and analysis of the financial principles discussed in
the course.
To achieve a high grade on the final exam students needs to be able to explain concepts
clearly and in detail, using recent data to support their answers where relevant.

d) Submission Requirements
Assignments and other assessments must be submitted through the Blackboard assessment
submission system (Turnitin).
Please ensure you keep a copy of all assessments that are submitted.
An Assessment Cover Sheet must be submitted with your assignment. The standard
Assessment Cover Sheet is available from the Current Students website (see Part C).
Please Note: You also need to submit a Hardcopy of the assignment with the
appropriate cover sheet to your tutor.
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e)

Extensions and Late Submission

Late Submissions - Unless an extension has been approved, you cannot submit an
assessment after the due date. If this does occur, you will be penalised 10% of the
assessments worth for each calendar day the task is late up to a maximum of 5 days. After 5
days a zero result will be recorded.

f)

Referencing
To avoid plagiarism, you are required to provide a reference whenever you include information
from other sources in your work. Further details regarding plagiarism are available in Section
C of this document.
Referencing conventions required for this unit are: Harvard Referencing
Helpful information on referencing can be found at
http://www.swinburne.edu.au/lib/studyhelp/harvard-quick-guide.pdf

g) Group-work Guidelines
This assignment is undertaken in groups of 2/3 throughout the semester.
Each group selects a company listed on the ASX and NYSE and researches on the
financing methods used by the company, and the implications of these financing
decisions on the operation of the company.
Every group of students has to present and submit an interim progress report on week
7 (during the tutorial/lecture hour.) For the Saturday student, the Interim Progress Report
presentation will be held on 18th April (3rd Class)
The second part of the assignment involves the group in the preparation of a professional
final report.
ASSIGNMENT DETAILS:

The final report of your Listed Company Assignment is worth 20%. The following
assessment criteria will be used to evaluate the quality of your final report for the Listed
Company Assignment:

The Assignment size would be approximately 4000 words (+/- 5%) excluding Endnotes,
references and footnotes. Please note that the size of the assignment could be
depending on information availability, analysis and types of corporation.

Please use the Harvard style referencing system for the assignment. The referencing
should be accurate and updated.

The company assignment should reflect the following things:

a) An introduction
b) Background of the company; origins; industry classification; management including
governance issues.
c) Investment decisions taken.
d) Sources of funds, including reference to markets, instruments and institutions used.
e) Uses of funds. Where possible comments on the matching principle could be made.
f) Analysis of the sources and uses of funds. *
g) Analysis of profit/loss/balance sheet. *
h) Share price fluctuations; market capitalisation.
i) Competitiveness in the market.
j) Findings, Conclusion and Recommendations .
*In selecting accounting ratios you should keep in mind that accountants use a wide variety
of ratios in assessing the performance of a company. Some emphasise day to day
management issues where others are concerned with the effectiveness of the financial
resources they have employed. You should keep in mind that your assignment is about
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finance therefore you should emphasise things like return on assets; return on equity;
interest and dividends times covered; and EBIT and other like measures.

Required Textbook(s)
Kidwell, D., Brimble, M., Basu, A., Lenten, L., and Thomson, D., 2013, Financial Markets,
Institutions and Money, 3rd edition, John Wiley and Sons Australia, Limited.

Recommended Reading Materials

The Library has a large collection of resource materials, both texts and current journals. Listed below are
some references that will provide valuable supplementary information to this unit. It is also recommended
that you explore other sources to broaden your understanding.

Texts:
Viney, C. and Phillips, O. 2012, McGraths Financial Institutions, Instruments, and Markets, 7th edn,
McGraw-Hill, Australia
Hunt, B., and Terry, C., 2008, Financial Institutions and Markets, 5th edition, Thomson Australia
Business periodicals and newspapers:
Financial Review
The Australian

Some useful websites:

Title of Website

URL

Finance and Economics related websites

Australian Securities Exchange (ASX)

http://www.asx.com.au

ANZ Banking Group Economics and Research

http://www.anz.com/corporate/economicsmarkets-research/

BRW

http://www.brw.com.au/

Commsec

http://www.comsec.com.au/

Commonwealth Bank Research

http://www.research.commbank.com.au/

National Australia Bank Research

http://www.wholesale.nabgroup.com

Westpac Banking Corporation Research

https://www.westpac.com.au/secure/publish.n
sf/Content/PBOI+Research

Australian Financial Review (AFR)

http://www.afr.com

Wall Street Journal (WSJ)

http://online.wsj.com/public/us

The Financial Times (FT)

http://www.ft.com/home/uk

Moneyweek

http://www.moneyweek.com

Fortune Magazine

http://money.cnn.com/magazines/fortune
Australian Government websites

Reserve Bank of Australia

http://www.rba.gov.au

Australian Bureau of Statistics (ABS)

http://www.abs.gov.au

Department of Treasury

http://www.treasury.gov.au

Australian Prudential Regulation Authority (APRA)

http://www.apra.gov.au
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Title of Website

URL

Australian Securities and Investments Commission (ASIC)

http://www.asic.gov.au

Other databases
Factiva (covers most Fairfax publications including Business
Review Weekly, The Australian Financial Review, and The
Age)

http://www.swinburne.edu.au/lib/database/facti
va.htm

DatAnalysis

http://www.aspecthuntley.com.au/af/dathome?
xtm-licensee=dat

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PART C:

FURTHER INFORMATION

For further information and links to resources for the following topics, refer to Swinburnes
Current Students web page http://www.swinburne.edu.au/student/
Student Charter
Please familiarise yourself with Swinburnes Student Charter. The charter describes what students
can reasonably expect from Swinburne in order to enjoy a quality learning experience. As students
contribute to their own learning experience and to that of their fellow students, the charter also
defines the University's expectations of students.
Student behaviour and wellbeing
Swinburne has a range of policies and procedures that govern how students are expected to
conduct themselves throughout the course of their relationship with the University. These include
policies on expected standards of behaviour and conduct which cover interaction with fellow
students, staff and the wider University community, in addition to following the health and safety
requirements in the course of their studies and whilst using University facilities.
All students are expected to familiarise themselves with University regulations, policies and
procedures and have an obligation to abide by the expected guidelines. Any student found to be in
breach may be subject to relevant disciplinary processes. Some examples of relevant expected
behaviours are:
1.
Not engaging in student misconduct
2.
Ensuring compliance with the Universitys Anti-Discrimination, Bullying and Violence and
Sexual Harassment requirements
3.
Complying with all Swinburne occupational health and safety requirements, including
following emergency and evacuation procedures and following instructions given by
staff/wardens or emergency response.
In teaching areas, it is expected that students conduct themselves in a manner that is professional
and not disruptive to others. In all Swinburne laboratories, there are specific safety procedures
which must be followed, such as wearing appropriate footwear and safety equipment, not acting in
a manner which is dangerous or disruptive (e.g. playing computer games), and not bringing in food
or drink.
Blackboard
You should regularly access the Swinburne Course Management System (Blackboard) available
via http://ilearn.swin.edu.au. Blackboard is regularly updated with important Unit information and
communications.
Communication
All communication will be via your Swinburne email address. If you access your email through a
provider other than Swinburne, then it is your responsibility to ensure that your Swinburne email is
redirected to your private email address.
Plagiarism
Plagiarism is the action or practice of taking and submitting or presenting the thoughts, writings or
other work of someone else as though it is your own work. Plagiarism includes any of the following,
without full and appropriate acknowledgment to the original source(s):
1.
The use of the whole or part of a computer program written by another person;
2.
the use, in essays or other assessable work, of the whole or part of a written work from any
source including but not limited to a book, journal, newspaper article, set of lecture notes,
current or past students work, any other persons work, a website or database;
3.
The paraphrasing of anothers work;
4.
The use of musical composition, audio, visual, graphic and photographic models,
5.
The use of realia that is objects, artefacts, costumes, models and the like.
Plagiarism also includes the preparation or production and submission or presentation of
assignments or other work in conjunction with another person or other people when that work
should be your own independent work. This remains plagiarism whether or not it is with the
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knowledge or consent of the other person or people. It should be noted that Swinburne encourages
its students to talk to staff, fellow students and other people who may be able to contribute to a
students academic work but that where independent assignment is required, submitted or
presented work must be the students own.
Enabling plagiarism contributes to plagiarism and therefore will be treated as a form of plagiarism
by the University. Enabling plagiarism means allowing or otherwise assisting another student to
copy or otherwise plagiarise work by, for example, allowing access to a draft or completed
assignment or other work.
Swinburne University uses plagiarism detection software (such as Turnitin) for assignments
submitted electronically via Blackboard. Your Convenor will provide further details.
The penalties for plagiarism can be severe ranging from a zero grade for an assessment task
through to expulsion from the unit and in the extreme, exclusion from Swinburne. Consequently
you need to avoid plagiarism by providing a reference whenever you include information from other
sources in your work.
Student support
You should talk to your Unit Convenor or Student Services, for information on academic support
services available for Swinburne students.
Special consideration
If your studies have been adversely affected due to serious and unavoidable circumstances
outside of your control (e.g. severe illness or unavoidable obligation) you may be able to apply for
special consideration (SPC).
Applications for Special Consideration will be submitted via the SPC online tool normally no later
than 5.00pm on the third working day after the submission/sitting date for the relevant assessment
component.
Special needs
Sometimes students with a disability, a mental health or medical condition or significant carer
responsibilities require reasonable adjustments to enable full access to and participation in
education. Your special needs can be addressed by Swinburne's Disability Services, who can
negotiate and distribute an 'Education Access Plan' that outlines recommendations for university
teaching and examination staff. You must notify the University Disability Liaison Officer of your
disability or condition within one week after the commencement of a unit of study to allow the
University to make reasonable adjustments.
Review of marks
An independent marker reviews all fail grades for major assessment tasks. In addition, a review of
assessment is undertaken if your final result is a marginal fail (45-49) or within 2 marks of a grade
threshold.
If you are not satisfied with the result of an assessment you can ask the Unit Convenor to review
the result. Your request must be made in writing within 10 working days of receiving the result. The
Unit Convenor will review your result against the marking guide to determine if your result is
appropriate.
If you are dissatisfied with the outcomes of the review you can lodge a formal complaint.
Feedback, complaints and suggestions
In the first instance you may discuss any issues with your Unit Convenor.
If you are dissatisfied with the outcome of the discussions with the Unit Convenor or would prefer
not to deal with your Unit Convenor, then you can complete a feedback form.
Advocacy
You are advised to seek advice from the staff at the Swinburne Student Amenities Association
(SSAA) if you require assistance with any academic issues.

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