COLLEGE OF ACCOUNTANCY

C-AE18 (Financial Markets)

First Semester | AY 2020-2021

PROGRAM: BS ACCOUNTANCY
COURSE GUIDE
I. Course Code – Title : C-AE18 Financial Markets
II. Prerequisite(s) : Intermediate Accounting 1
III. No. of Credit Units : 3
IV. Required No. of Hrs. : 54
V. Course Description : As providers of vital relevant information to various key
players in the finance industry, accountants should gain professional competence in and be
able to effectively communicate key concepts pertaining to financial markets.

This course provides an overview about the structure and role of financial markets in the
financial system, risk and return theories, interest rates determination and structure,
money markets, debt markets, equity markets, derivatives markets, and foreign exchange
markets.

Through research, mini-cases and communication exercises, students will be able to apply
these concepts in analyzing issues about financial markets.

VI. Course Intended Learning Outcomes:

At the end of the semester, the students should be able to:
A. Cognitive:
1. Explain the structure and functions of a financial system.
2. Describe the structure and key features of financial markets and financial intermediaries.
3. Discuss key concepts about risk, return and interest rates.
4. Explain key concepts about money, debt, equity, derivatives and foreign exchange markets.

B. Affective:
1. Develop the values of honesty, objectivity and diligence.
2. Discuss the importance of social responsibility in providing information about financial
markets.

C. Psychomotor:
1. Compile recent newspaper articles on issues pertaining to financial markets
2. Develop computing skills in determining relevant information pertaining to financial
markets.

VII. Requirements for Online Learning: smartphone or laptop with internet connection

VIII. Course Outline

Module Module Title Duration
(in weeks)
1 Introduction to Financial Markets 1
2 Introduction to Financial Markets: Participants and 1
Players
3 Understanding Risk and Return 1
4 Capital Market Theory 1
5 Understanding Interest Rates 1
Faculty: ZARA BERNADETTE P. PEÑA, CPA 1|Page
 COLLEGE OF ACCOUNTANCY
C-AE18 (Financial Markets)
First Semester | AY 2020-2021

Module Module Title Duration

(in weeks)
6 Theories of Terms Structures and Interest 1
7 Understanding Money Markets 1
8 Money Markets Instruments 1
9 Understanding Debt Markets 1
10 Understanding Bond Valuation and Yield 1
11 Equity Markets – Part 1 1
12 Equity Markets – Part 2 1
13 Understanding Derivatives 1
14 Risks and Hedging 1
15 Derivative Market and Future Contracts 1
16 Understanding Foreign Exchange 1
17 Hedging for Foreign Exchange Risk Part 1 1
18 Hedging for Foreign Exchange Risk Part 2 1
Total 18

IX. References

Brigham, E., & Houston, J. F. (2015). Fundamentals of FInancial Management 13ed. Taguig
City, Philippines: Cengage Learning Asia Pte. Ltd.
Bangko Sentral ng Pilipinas. (n.d.). Principles for Financial Market Infrastructures. Retrieved
April 1, 2020, from bsp.gov.ph:
http://www.bsp.gov.ph/downloads/Forms/PhilPass/FMIPrinciples.pdf

Bangko Sentral ng Pilipinas. (2019, December). Foreign Exchange Regulations. Retrieved

April 1, 2020, from bsp.gov.ph:
http://www.bsp.gov.ph/downloads/Publications/FAQs/faqfxreg.pdf
Bangko Sentral ng Pilipinas. (2019, December). Interest Rates. Retrieved April 1, 2020, from
bsp.gov.ph: http://www.bsp.gov.ph/downloads/Publications/FAQs/intrates.pdf
Bangko Sentral ng Pilipinas. (2019, December). The Exchange Rate. Retrieved April 1, 2020,
from bsp.gov.ph: http://www.bsp.gov.ph/downloads/Publications/FAQs/exchange.pdf

Cabrera, M. E. (2015). Financial Management Principles and Applications Vol. 1. Manila,

Philippines: GIC Enterprises & Co., Inc.
Cabrera, M. E. (2015). Financial Management Principles and Applications Volume 2. Manila,
Philippines: GIC Enterprises & Co., Inc.

Cabrera, E.B. (2020). Financial Markets and Institutions. Manila, Philippines: GIC
Enterprises & Co., Inc.

Darskuviene, V. (2010). Financial Markets. Lifelong Learning Programme

Levinson. M. Guide to Financial Markets. Sixth Edition. Pine street London : Profile books Ltd
Faculty: ZARA BERNADETTE P. PEÑA, CPA 2|Page
 COLLEGE OF ACCOUNTANCY
C-AE18 (Financial Markets)
First Semester | AY 2020-2021

Fabozzi, F. J. (2015). Capital Markets Institutions and Instruments. Cambridge: MIT Press.
Khraisha, T., Arthur, K. Can we have a general theory of financial innovation processes? A
conceptual review. Financ Innov 4, 4 (2018). https://doi.org/10.1186/s40854-018-0088-y

Philippine Stock Exchange. (2019). The Philippine Stock Exchange, Inc. Annual Report 2018.
Retrieved April 1, 2020, from pse.com.ph:
https://www.pse.com.ph/resource/staticcontent/IR/Financial%20Reports/Annual%20Re
port/2018_PSE_Annual_Report.pdf

X. Classroom Policies (please check the following proposed policies. You may
change/add/remove some items to make the policies more suitable to the nature and
needs of your class)
Students who are enrolled in this course shall comply with the University’s policies
indicated in the Student’s Manual, and the following classroom policies:

1. Attend class regularly and punctually. In case a student is unable to attend the class,
he/she shall inform the teacher, preferably before the class begins, and state his reason
for being unable to attend the class. An excuse letter addressed to the teacher, signed by
both the student and his/her parent or guardian must be presented. Supporting
documents like medical certificates or approved student activity forms must be attached
to the excuse letter. The student, although marked in the records as absent, will be
“excused” if the reason for such absence is meritorious.

2. It is the responsibility of the student to update himself as to the activities/lessons that

he missed during his absence. Teachers are not required to give special quizzes but may
do so should time and academic resources allow. Therefore, all students are strongly
advised to be present and to take their quizzes and exams as scheduled.

3. All class requirements/outputs shall be submitted on time and follow the rubrics or
standards for these requirements/outputs.

4. College-wide announcements will be posted in the University of the Assumption College

of Accountancy Facebook Page while University-wide announcements will be posted in
the UA Facebook Page. Students are advised to regularly check these accounts for
updates.

For online classes:

5. Students shall ensure that their UA GSuite and SERP account passwords are secure by
not disclosing it to any person or posting it in any area where anyone can easily view
and copy such passwords. For the UA GSuite account, each student shall be responsible
for the setup of password recovery through a back-up email or cellphone number. SERP
password reset can only be done with the assistance of the University’s authorized
personnel.

Faculty: ZARA BERNADETTE P. PEÑA, CPA 3|Page

 COLLEGE OF ACCOUNTANCY
C-AE18 (Financial Markets)
First Semester | AY 2020-2021

6. Students are encouraged to log-in at least ten minutes before each class. This is to give
ample time for troubleshooting, if necessary, and to ensure that the students are ready
and comfortable once the class begins.

7. Students shall attend only the classes that they are enrolled in. They are not allowed to
transfer to other classes without proper authorization.

8. Students shall select a quiet, well-ventilated, clean and safe learning space whenever
they attend online classes. All learning materials shall be organized by the students in
such a way that these are readily accessible to them when the need arises.

9. Students shall regularly check the Google Classroom for announcements and classwork.
There will be email alerts for posts by the teachers in the Google Classroom. Please
promptly communicate any query or concern regarding classwork or announcements to
the teacher.

10. Students shall read the assigned modules and textbook chapters before the online
session in Google Meet in order to facilitate learning and retention of lessons.

11. Microphones are set to “mute” during live discussion in order to avoid unnecessary
noise. This will be “unmuted” during the Q&A portion or graded recitation. Cameras
may remain on so that the teacher can monitor the students.

12. Once the teacher is presenting, students shall listen attentively and take note of possible
questions to be raised in the Q&A. The “chat” and “present” functions shall be used by
students according to the instruction of the teacher.

13. During class, students may not answer personal calls or texts unless it is an emergency
that involves the health or safety of an individual or property.

14. Students shall wear decent clothing (with sleeves, not tattered or skimpy, with modest
neckline and no offensive prints), avoid gaudy or extravagant accessories, and observe
proper grooming and good hygiene. Students must strive to look professional and
dignified as part of their training for their future careers.

15. During quizzes or exams, students are expected to practice academic integrity.

16. Students shall not take a photo of any exam, activity sheet or any course learning
material or recording and upload or distribute it to other people through any means or
format whether printed or digital, especially through social media.

Faculty: ZARA BERNADETTE P. PEÑA, CPA 4|Page

 COLLEGE OF ACCOUNTANCY
C-AE18 (Financial Markets)
First Semester | AY 2020-2021

XI. Grading System

1. Prelim, Midterm, Partial Final and Final Grades are computed as follows:

Prelim Grade (Prelim Grade (PG)

(Class Standing x2) + Preliminary Examination Rating = PG
3

Mid-term Grade (MG)

(Class Standing x2) + Mid-Term Examination Rating = MG
3

Partial Final Grade (PFG)

(Class Standing + (Final Examination Rating x 2) = PFG
3
Final Grade (FG)
Prelim Grade (PG) + Mid-Term Grade (MG) + Partial Final Grade (PFG) = FG
3

2. Scores in quizzes, exams and other outputs are to be transmuted using the
Transmutation Table appended to this guide.

XII. Important Dates

As indicated in the Collegiate Calendar, the schedule of activities is subject to change
depending on actual experiences, unforeseen events, situations and circumstances.

Please check the Google Classroom and the official FB page of the University of the
Assumption and the College of Accountancy for updates in the Collegiate Calendar and other
important dates.

Inclusive Dates/Term
1stSemester August 10, 2020 – December 17, 2020
Christmas Break December 18, 2020 – January 11, 2021
2nd Semester January 12, 2021 – May 27, 2021
Break before 3rd term May 28, 2021 – June 13, 2021
3rd Semester June 14, 2021 – July 21, 2021

Major Examinations
Exam 1st Semester 2nd Semester 3rd Semester
Prelim Exams Sept. 17,18, 2020 Feb. 22, 23, 2021
Midterm Exams Oct. 28,29, 2020 April 12,13, 2021 July 1, 2021
Final Exams Dec. 14,15,16,17, 2020 May 24,25,26,27, 2021 July 21, 2021

Faculty: ZARA BERNADETTE P. PEÑA, CPA 5|Page

 COLLEGE OF ACCOUNTANCY
C-AE18 (Financial Markets)
First Semester | AY 2020-2021

XIII. Teacher’s Contact Information –Be mindful of data privacy, Please do not give this
information to others without the teacher’s consent.

ZARA BERNADETTE P. PEÑA, CPA

(+639361865017 or Zarah Badet Peña)
[email protected]

Appendix A – Transmutation Table

Faculty: ZARA BERNADETTE P. PEÑA, CPA 6|Page