ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

WARNING

1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN “AIOU PLAGIARISM POLICY”.

Course: Financial Markets and Institutions (8441) Semester: Spring, 2025

Level: BBA

Total Marks:100 Pass Marks: 50

ASSIGNMENT No. 1

Q. 1 Discuss the role of financial markets and financial institutions in facilitating economic growth and stability. Provide examples of how these entities interact to support the global economy. (20)

Q. 2 Explain the mechanics and trade-offs of monetary policy. How does monetary policy influence money market operations and yields? (20)

Q. 3 Compare and contrast the types of bonds available in the bond market. How do institutional investors utilize the bond market for portfolio diversification? (20)

Q. 4 Explain the concept and valuation of mortgages. What are the key characteristics of residential mortgages, and how do they differ from other types of loans? (20)

Q. 5 Discuss the methods of stock valuation and the risks associated with investing in stocks. How do these methods differ for domestic and foreign stock valuation? (20)

ASSIGNMENT No. 2

Total Marks: 100 Pass Marks: 50

This assignment is a research-oriented activity. You are required to prepare a detailed report of about 3000 words on the topic allotted to you to be submitted to your teacher for evaluation.

You are required to select one of the following topics according to the last digit of your registration number. For example, if your registration number is 18-IDM-3427183 then you will select topic # 3(the last digit): -

List of Topics:

1. Institutional Use of Money Markets
2. Valuation and Risk of Money Market Securities
3. Interaction Among Money Market Yields
4. Globalization Trends in Money Markets
5. Institutional Use and Globalization of Mortgage Markets
6. Stock Offering and Monitoring of Publicly Traded Companies
7. Stock Valuation Methods and Risks
8. Foreign Stock Valuation
9. Globalization Trends in Stock Markets
10. Mechanics and Trade-offs in Monetary Policy

GUIDELINES FOR ASSIGNMENT # 2:

• 1.5 line spacing
• Use headers and subheads throughout all sections
• Organization of ideas
• Writing skills (spelling, grammar, punctuation)
• Professionalism (readability and general appearance)
• Do more than repeat the text
• Express a point of view and defend it.

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

Course: Financial Markets and Intuitions Course Code: 8441,5086,8525

Level: MBA, BBA, M.Com Credit hours: 03

Unit 1 Overview of Financial Markets and Institutions

Unit 2 Monetary Policy and Money Markets

Unit 3 Bond Markets

Unit 4 Mortgage Market

Unit 5 Equity Markets

Unit 7 Thrift and Financial Operations

Unit 8 Mutual Funds and Securities Operations

Unit 9 Insurance and Pension Funds Operations

9.1 Insurance Companies: An Overview

9.2 Regulation and Valuation of Insurance Companies

9.3 Multinational Insurance Corporations

9.4 Pension Funds: Background, Management and Performance

9.5 Pension Funds Participation in Financial Markets

Recommended book

Madura, J. (2010). Financial Markets and Institutions. (9^th edition). Mason OH:
South-Western Cengage Learning.

Additional Readings

Peter, H. and Keith, B. (2007). Financial Markets and Institutions. Prentice Hall

Stephen, V. (2007). An Introduction to the Global Financial Market. Palgrave Publications.

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