Course Outline

RSM230H1S Financial Markets Sections L0201, L0301 and L0401 Spring 2014 Course Meets: Mondays 10am noon !L0201" and 1pm to 3pm !L0301" in #$20% Fridays 1 3pm !L0401" in #$30

&nstructor: ' Mail: $**ice +ours: #e/page: Tutorials: Communication:

Maureen Stapleton Maureen(Stapleton)rotman(utoronto(ca Monday 3 4pm in ,SM 4-., or /y appointment 0dditional o**ice 1ours 2ill /e posted on 3lack/oard 1ttp:44portal(utoronto(ca Fridays, noon to 1pm in SS room 10-., starting 5anuary 24( &nstructor pre*ers to /e contacted /y email and 2ill respond 2it1in 24 1ours( Please include RSM230 in your subject line(

Course Sco e and Mission T1is course is an introduction to t1e structure, *unction and analysis o* *inancial markets( &t discusses key details o* t1e Canadian markets, and pro6ides some glo/al conte7t( &ts most /asic o/8ecti6e is to pro6ide students 2it1 kno2ledge re9uired to talk intelligently a/out current *inancial issues so t1ey can per*orm 2ell in a 8o/ inter6ie2( :1e course 2ill /rie*ly 1ig1lig1t t1e nature o* *inancial securities, t1e ma8or players t1at /uy and issue t1em and t1e regulations and procedures t1at go6ern t1eir trans*er( &t 2ill include some o* t1e key material co6ered in t1e Canadian Securities Course !CSC", 21ic1 is re9uired o* almost anyone 2orking in t1e *inancial markets( Students 21o are interested in a career in *inance s1ould consider registering *or t1e CSC during t1e academic year so t1ey 2ill 1a6e completed t1eir CSC designation prior to looking *or a summer *inance 8o/( &n*ormation on t1e CSC can /e *ound at 1ttps:44222(csi(ca4student4en;ca41ome(71tml Finance students s1ould also e7plore t1e re9uirements *or t1e CF0 designation CF0 <rogram 21ic1 are posted on t1e ,otman Commerce portal(

Course Pre!re"uisites: ,SM100= Course #$clusions : >one

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Course Materials and Re"uired Readin%s :1e course 2ill /e taug1t *rom one re9uired te7t/ook, t2o supplementary te7t/ooks and a series o* lig1t readings *rom current sources( :1e posted readings are an integral part o* t1is course( <lease c1eck 3lack/oard *re9uently as additional readings not included in t1is course outline 2ill /e posted during t1e semester( &ll osted articles are re"uired readin%s and may be co'ered in t(e e$am) Re"uired Te$tboo*: Sean Cleary, Canadian Securities '7am: Fast :rack Study @uide, 4t1 edition, 5o1n #iley 2013( Note: This a new edition of the Cleary textbook. The old 3rd edition is very similar but the chapter numbers differ. If you use the 3rd edition, please use the eekly !chedule that is posted separately on "lackboard. Su lementary Te$tboo*s: Laurence 3oot1 and Sean Cleary, &ntroduction to Corporate Finance, 3nd edition, 5o1n #iley, 2012. (This textbook is used in RSM 332 and 333) Canadian institutional details are co6ered in t1e Cleary study guide *or t1e CSC e7am and t1e 3oot1 Cleary te7t, 21ic1 is used in ,SM332 333( >ote t1at t1e Cleary te7t is essentially a prep /ook and t1e in*ormation is 6ery terse, so t1e posted readings are important to ac1ie6e an understanding o* t1e material( #'aluation and +rades 4 ne2s articles A summaries !2(BC eac1" :2o assignments: Mid :erm: Final '7am: 10C (See weekly schedule for due dates) 20C (Due on February ! and March 2 ) 3BC (February 2! fro" to 2#3$%") 3BC (T&' by 'rts ( Science)

:1e t2o assignments and t1e su/mission o* articles s1ould /e done in groups o* no more t1an *i6e and no less t1an t1ree students( :1ere is a strong pre*erence *or t1e groups to consist o* students *rom t1e same section o* ,SM230( $t1er2ise it is di**icult to organiDe group presentations( :1e only e7ception is i* a group disintegrates a*ter t1e drop date( Course &nnouncements Slides, announcements, assignments and additional reading materials 2ill /e posted on 3lack/oard(

Course ,ormat and #$ ectations:

:1is course is primarily descripti6e and 2ill /e taug1t in a con6entional lecture *ormat supplemented 2it1 t2o class sessions in t1e "#$ %inance &esearch and Tradin' (ab )%&T(" 21ere students 2ill learn to use and apply key sources o* *inancial data and in*ormation( &t is 6ery important t1at ,otman Commerce students /e a2are o* 21at is 1appening in /ot1 t1e economy and t1e capital markets( :o 1elp ac1ie6e t1at goal, eac1 student group 2ill su/mit electronically on *our assigned dates !Sundays /e*ore Midnig1t":

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1) 0 copy o* a s1ort article do2nloaded *rom t1e 2e/ !=a1oo, @oogle, >= :imes, 'conomist, ,euters, Financial <ost etc" dealing 2it1 t1e material co6ered in t1e previous 2eekEs class and 2) 0 /rie* e7planation )maximum one pa'e, double spaced, *+ point font, o* 21y t1e article is important( Fepending on time constraints, t1e instructor 2ill call on some randomly selected groups at t1e /eginning o* class to e7plain 21y t1ey t1oug1t t1is particular article 2as rele6ant and important( -ritten &ssi%nments and .e/s &rticle Summaries: <lease note t1at clear, concise, and correct 2riting 2ill /e considered in t1e e6aluation o* your assignments and ne2s article summaries( :1at is, you may lose points *or 2riting t1at impedes communication: poor organiDation, 2eak paragrap1 de6elopment, e7cessi6e 2ordiness, 1ard to *ollo2 sentence structure, spelling mistakes and grammatical errors( Students 21o re9uire additional support and4or tutoring 2it1 respect to t1eir 2riting skills are encouraged to 6isit t1e 0cademic Success Centre !222(asc(utoronto(ca" or one o* t1e College #riting Centres !222(2riting(utoronto(ca42riting centres"( :1ese centres are teac1ing *acilities not editing ser6ices, 21ere trained sta** can assist students in de6eloping t1eir academic 2riting skills( :1ere is no c1arge *or t1e instruction and support( +rou -or*: 0ssignments and ne2s article su/missions re9uire you to 2ork in teams o* 3 to B students( Learning to 2ork toget1er in teams is an important aspect o* your education and preparation *or your *uture careers( :1at said, pro8ect /ased team2ork is o*ten ne2 to students and you are t1ere*ore reminded o* t1e *ollo2ing e7pectations 2it1 respect to /e1a6iour and contri/utions to your team pro8ects( 1( ,ead t1e document entitled, G)orkin* in Tea"s# +uidelines for Rot"an ,o""erce Students H 21ic1 is a6aila/le on t1e ,C portal under t1e 0cademic Ser6ices ta/( 2( #1en 2orking in a team, ,otman Commerce students are e7pected to: :reat ot1er mem/ers 2it1 courtesy and respect% +onour t1e ground rules esta/lis1ed /y t1e team% Contri/ute su/stantially and proportionally to t1e *inal pro8ect% 'nsure enoug1 *amiliarity 2it1 t1e entire contents o* t1e group pro8ect4assignment so as to /e a/le to sign o** on it as original 2ork% Meet t1e pro8ect timeline as esta/lis1ed /y t1e team(

3( ,esol6ing di**erences: Con*licts can and do occur( Con*licts are part o* t1e teamEs process o* learning 1o2 to 2ork toget1er e**ecti6ely and can actually generate e7citing de/ate and creati6e solutions i* managed appropriately( Student teams are collecti6ely e7pected to resol6e disputes or misunderstandings as soon as t1ey arise !and prior to su/mission o* assignments and ne2s articles"( &n cases 21ere teams are una/le to reac1 a mutually agreea/le solution, t1e entire team must meet 2it1 t1e ,otman Commerce :eam Coac1II as soon as possi/le( :1e Coac1 2ill listen to t1e team and 1elp de6elop options *or impro6ing t1e team process( 0ll mem/ers o* t1e pro8ect team must commit to, and, utiliDe t1eir action plans( II :1e ,otman Commerce :eam Coac1, >ikoleta Jlamis, may /e reac1ed at nikoleta)nikoletaandassociates(com *or an appointment( >ikoleta is an e7pert in team dynamics and *acilitation( >ote t1at >ikoletaEs role is to pro6ide guidance, support and ad6ice on team matters not to *ormally e6aluate or assess team2ork *or academic purposes(

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-##012 SCH#341# Session 1 5an 6710 Session 2 5an 1371: Session 3 -an +./+0 Ca ital Mar*ets and t(e ,inancial System Cleary C1apters 1 A 2% C1apter 3, pages 21 24 !upplementary# 3oot1 Cleary C1apter 1 T(e Canadian #conomy and t(e 8an* o9 Canada Cleary C1apter 4 !pages 33 to 3K": C1apter B 3ank o* Canada Fact S1eets A ot1er readings (-osted on &lackboard) ,i$ed ;ncome Securities < t(e Money Mar*et ,leary ,ha%ter . A C1apter 11 page 12? 12. ' note on the ,anadian Money Market / M.Sta%leton !<osted on 3lack/oard"

Sub"it 'rticle 0 Money Market or The &ank of ,anada 0 1an. 2. )eekly tutorials start 1anuary 2!
Session = 5an 2:731 T(e 8ond Mar*et Cleary, C1apter ? 0 note on t1e Canadian 3ond Market / M.Sta%leton (-osted on &lackboard) Sub"it 'rticle 22 &ond Market2 Feb. 2 1ssi'nment * to be posted on "lackboard2 3roups of 3 to 4 students Session > ,eb =? : Session 6 ,eb 1071= ,inance 1ab Class ! ,i$ed ;ncome Securities 8M@ ,inance Researc( and Tradin% 1ab *.4 !t. 3eor'e !treet, +nd floor 2 5ates 6 Times to be announced Canadian 8an*in% ,eadings :30 (-osted on &lackboard)

1ssi'nment * is due on %ebruary *0 at 0 pm in the &otman Commerce $ffice &715IN3 Session : ,eb 2=72B Session B Marc( 37: 778 9 No class or tutorial on %ebruary *: 2 +*

M;3 T#RM #A&M! Monday? ,ebruary 2= 9rom 1 to 2:30 m in #A310 < #A 320 (There will be no classes or tutorial held durin* the week of the exa") #"uities < t(e Stoc* Mar*et Cleary, C1apter 3, pages 24 2K% Cleary, C1apter K (3"it ,on4ertibles5 Retractable -referreds5 ,3-rS ( 3ther -referreds) Cleary, C1apter ., C1apter 11 !pages 130,131,133, 134" Cleary, C1apter 13, C1apter 14 !1-B 1--, 1?2 1?4" Sub"it 'rticle 3 0 67uities or Stock Markets 0 Mar. 8

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1ssi'nment + to be posted on "lackboard 9 3roups of 3 to 4 students Session C Marc( 1071= ,inance 1ab Class ! Daluin% #"uities Class /ill be (eld in t(e "#$ %inance &esearch and Tradin' (ab

Session 10 Marc( 1:721

Mutual ,unds < Mana%ed Products Cleary C1apters 1?, 1K (o"it 9S:,,s)% C1apter 1.% C1apters 20, 21 A 22% C1apter 24 (o"it s%lit shares5 %a*e 2;25 2;3) #$c(an%e Traded ,unds E ,&F < Mutual ,unds )posted articles,

1ssi'nment + is due on #onday, #arch +* at 0 pm in the &otman Commerce $ffice Session 11 Marc( 2=72B 3eri'ati'e Securities Cleary C1apter 10 (3"it <Ri*hts and )arrants) 4nderstandin% PP.Gs (article %osted on &lackboard) Sub"it 'rticle ! 0 Mutual Funds5 6TFs or =nsurance -roducts 2 March 3$ Port9olio Mana%ement Cleary C1apters 1B and 1-

Session 12 Marc( 317& ril =

POLICY AND PROCEDURE Missed Tests and &ssi%nments Hincludin% midterm e$aminationsI Students 21o miss a test or assignment *or reasons entirely /eyond t1eir control !e(g( illness" may su/mit a re9uest *or special consideration( <ro6ided t1at noti*ication and documentation are pro6ided in a timely manner, and t1at t1e re9uest is su/se9uently appro6ed, no academic penalty 2ill /e applied( &n suc1 cases, students must noti*y ,otman Commerce on t1e date o* t1e missed test !or due date in t1e case o* course 2ork" and su/mit supporting documentation !e(g( Jeri*ication o* Student &llness or &n8ury *orm" to t1e ,otman Commerce <rogram $**ice 2it1in =B (ours o* t1e originally sc1eduled test or due date( Students 21o do not pro6ide ,otman Commerce or t1e instructor 2it1 appropriate or su**icient supporting documentation 2ill /e gi6en a grade o* 0 !Dero"( .ote t(at t(e (ysicianGs re ort must establis( t(at t(e atient /as e$amined and dia%nosed at t(e time o9 illness? not a9ter t(e 9act) T(e ,aculty /ill not acce t a statement t(at merely con9irms a later re ort o9 illness made by t(e student to a (ysician) Missed Mid Term #$ams: T(ere /ill be no ma*e!u midterm e$am( Students 21o miss t1e midterm e7am *or 6alid documented reasons 2ill 1a6e grades reallocated to t1eir *inal e7am(
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1ate Submission o9 &ssi%nments and .e/s &rticle Summaries Late su/missions 2ill not /e accepted unless t1ere are 6alid medical reasons supported /y a doctorsE note( Students must email t1eir instructor on t1e due date and pro6ide supporting documentation to t1e ,otman Commerce $**ice 2it1in 4K 1ours( &ccessibility .eeds :1e Lni6ersity o* :oronto is committed to accessi/ility( &* you re9uire accommodations *or a disa/ility, or 1a6e any accessi/ility concerns a/out t1e course, t1e classroom or course materials, please contact 0ccessi/ility Ser6ices as soon as possi/le: disa/ility(ser6ices)utoronto(ca or 1ttp:44222(accessi/ility(utoronto(ca4( &cademic ;nte%rity 0cademic &ntegrity is a *undamental 6alue essential to t1e pursuit o* learning and sc1olars1ips at t1e Lni6ersity o* :oronto( <articipating 1onestly, respecti6ely, responsi/ly, and *airly in t1is academic community ensures t1at t1e Lo*: degree t1at you earn 2ill continue to /e 6alued and respected as a true signi*ier o* a studentMs indi6idual 2ork and academic ac1ie6ement( 0s a result, t1e Lni6ersity treats cases o* academic misconduct 6ery seriously( The >ni4ersity of Toronto?s ,ode of &eha4iour on 'cade"ic Matters 1ttp:44222(go6erningcouncil(utoronto(ca4policies4/e1a6eac(1tm outlines t1e /e1a6iours t1at constitute academic misconduct, t1e process *or addressing academic o**ences, and t1e penalties t1at may /e imposed( =ou are e7pected to /e *amiliar 2it1 t1e contents o* t1is document( <otential o**ences include, /ut are not limited to: &n papers and assignments: Lsing someone elseMs ideas or 2ords 2it1out appropriate ackno2ledgement( Su/mitting your o2n 2ork in more t1an one course 2it1out t1e permission o* t1e instructor( Making up sources or *acts( $/taining or pro6iding unaut1oriDed assistance on any assignment !t1is includes colla/orating 2it1 ot1ers on assignments t1at are supposed to /e completed indi6idually"( $n test and e7ams: Lsing or possessing any unaut1oriDed aid, including a cell p1one( Looking at someone elseMs ans2ers Misrepresenting your identity( Su/mitting an altered test *or re grading( Misrepresentation: Falsi*ying institutional documents or grades( Falsi*ying or altering any documentation re9uired /y t1e Lni6ersity, including !/ut not limited to", medical notes( 0ll suspected cases o* academic dis1onesty 2ill /e in6estigated /y t1e *ollo2ing procedures outlined in t1e ,ode of &eha4iour on 'cade"ic Matters. &* you 1a6e any 9uestion a/out 21at is or is not permitted in t1e course, please do not 1esitate to contact t1e course instructor( &* you 1a6e any 9uestions a/out appropriate researc1 and citation met1ods, you are e7pected to seek out additional in*ormation *rom t1e instructor or ot1er Lo*: resources suc1 as College #riting Centres or t1e 0cademic Success Centre( #mail

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0t times, t1e course instructor may decide to communicate important course in*ormation /y email( 0s suc1, all Lo*: students are re9uired to 1a6e a 6alid L:mailN email address( =ou are responsi/le *or ensuring t1at your L:mailN email address is set up 0>F properly entered on t1e ,$S& system( For more in*ormation please 6isit 1ttp:441elp(ic(utoronto(ca4category434utmail(1tml For2arding your utoronto(ca email to a +otmail, @mail, =a1oo or ot1er type o* email account is not ad6isa/le( &n some cases, messages *rom utoronto(ca addresses sent to +otmail, @mail or =a1oo accounts are *iltered as 8unk mail, 21ic1 means t1at important messages *rom your course instructor may end up in your spam or 8unk mail *older( 8lac*board and t(e Course Pa%e :1e online course page *or t1is course is accessed t1roug1 3lack/oard( :o access t1e course page, go to t1e Lo*: <ortal login at 1ttps:44portal(utoronto(ca4 and log in using your L:$,id and pass2ord( $nce you 1a6e logged in, look *or t1e My Courses module 21ere youEll *ind t1e link to all your course 2e/sites( &* you donEt see t1e course listed 1ere /ut you are properly registered *or t1e course in ,$S&, 2ait 4K 1ours( &* t1e course does not appear, go to t1e &n*ormation Commons +elp Fesk in ,o/arts Li/rary, 1st *loor, *or 1elp, or e7plore t1e <ortal &n*ormation and +elp at 222(portalin*o(utoronto(ca4students and re6ie2 t1e Fre9uently 0sked Ouestions( Recordin% 1ectures Lectures and course materials prepared /y t1e instructor are considered /y t1e Lni6ersity to /e an instructorEs intellectual property co6ered /y t1e Canadian Copyrig1t 0ct( Students 2is1ing to record a lecture or ot1er course material in any 2ay are re9uired to ask t1e instructorEs e7plicit permission, and may not do so unless permission is granted !note: students 21o 1a6e /een pre6iously granted permission to record lectures as an accommodation *or a disa/ility are, o* course, e7cepted"( :1is includes tape recording, *ilming, p1otograp1ing <o2er<oint slides, 3lack/oard materials, etc( &* permission is granted /y t1e instructor !or 6ia 0ccessi/ility Ser6ices", it is intended *or t1e indi6idual studentEs o2n study purposes and does not include permission to Gpu/lis1H t1em in any2ay( &t is a/solutely *or/idden *or a student to pu/lis1 an instructorEs notes to a 2e/site or sell t1em in any ot1er *orm 2it1out *ormal permission(

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