Ateneo - UPO

The Course provides an in-depth insight about the institutional and operating features of securities markets (equity, debt and derivatives markets) as well as about their role in modern financial systems. To this end, the course syllabus develops through the analysis of the following: the characteristics of the financial instruments traded in securities markets, the organizational settings of securities exchanges, the processes for the listing in regulated markets and the public offerings, the business models of the various financial institutions involved in securities markets. Due attention is given to the role and the impact of both EU and national regulations.

o Banfi A., Nadotti L., Tagliavini G., Valletta M., Economia del mercato mobiliare, ISEDI, Milano, 2016.
o The instructor will provide articles, working papers and reports in order to deepen specific course topics by the course official web page at the following link: https://eco.dir.unipmn.it . The login to the web page requires a password; please contact the instructor to get it (mario.valletta@uniupo.it).

1. Knowledge and understanding: the students will acquire the knowledge about the institutional and operating features of securities markets (equity, debt and derivatives markets) as well as about their role in modern financial systems. In detail, the students will acquire the knowledge about the characteristics of the financial instruments traded in securities markets, the organizational settings of securities exchanges, the processes for the listing in regulated markets, the public offerings, the business models of the various financial institutions involved in securities markets.
2. Applying knowledge and understanding: the students will acquire the ability to apply knowledge in order to choose the financial instruments suited to satisfy specific investment needs and to hedge speculative risks.
3. Making judgments: the students will be able to apply the knowledge acquired, on both a theoretical and an operational basis, in order to make autonomous judgements about the profitability and riskiness of various types of financial investments end hedging operations. Furthermore, the students will be able to use the knowledge acquired to evaluate the efficiency of the most important Italian financial markets and the related supervision.
4. Communication skills: the students will acquire the ability to use the technical language used by professionals of financial markets in order to clearly communicate with both specialized and non-specialized interlocutors. The knowledge of the most important information sources will make them able to better support their arguments.
5. Learning skills: the students will become familiar with the most important information sources, web sites (financial markets, supervision authorities, research centers) and free databases.

Students must have passed the exam of following courses: Business Economics, Accountancy (I), Financial Markets and Institutions.

1. Knowledge and understanding: traditional face-to-face lessons and self-study based on teaching materials.

2. Applying knowledge and understanding: exercises carried-out by the teacher during the course and exercises based on previous written exams carried-out by the students (homework based on materials published on the course’s webpage). During the Course some qualified guest speakers will be invited to share with the class their professional experience.

3. Making judgments: students will be stimulated to judge the strengths and weaknesses of the financial instruments used to make investments or to hedge speculative risks, the most important Italian financial markets and the related supervision.

4. Communication skills: the meaning of the terms used by professionals of financial markets will be explained.

5. Learning skills: every topic will be discussed beginning from the illustration of the problem and then analyzing the various possible solution.

Further information can be found in the Course official web page at the following link: https://eco.dir.unipmn.it

One compulsory written exam consisting of six questions (closed books and closed notes), covering the whole course syllabus and including exercises, with a 60-minute duration. During the period of teaching, all students may sit for a mid-term written exam covering the first part of the course contents.

o knowledge and understanding: by written open questions.
o applying knowledge and understanding: through exercise.
o making judgements: by written open questions.
o communication skills: by written open questions.
o learning skills: by a mid-term exam during the course

- Introduction on the course: objectives, program, assessment.
- Characteristics of securities markets and related intermediation activities.
- The organizational and operational structure of Borsa Italiana (Italian Stock Exchange).
- Stock listing in the Italian Stock Exchange: requirements, convenience and consequences.
- Telematic trading in the Italian Stock Exchange: trading offers, different stages of the stock exchange activities and pricing.
- Bond placements and their trading in the regulated markets.
- Investment services in the MIFID context.
- Evaluation of bond investments: principles and indicators.
- Evaluation of stock investments, convertible bonds and warrants: principles and indicators.
- Capital increase operations.
- Takeover bids and public offers of sale.
- Securities portfolios: strategic asset allocation, efficient portfolios and benchmark selection.
- Mutual funds, SICAV and ETF: characteristics and relative markets.
- Performance evaluation of managed portfolios.
- Stock and index derivatives (characteristics, pricing, basic strategies).
- Bond derivatives (characteristics, pricing, basic strategies).

By giving a written exam, students must show:
KNOWLEDGE
- to know the theories aiming at explaining the functioning of securities markets and financial intermediation in these markets;
- to know the main features of domestic securities markets and the different types of financial instruments that are traded in these markets;
- to be aware of the main regulations affecting the structure and the functioning of domestic securities markets;
COMPETENCES
- to be able to apply the methodologies commonly used for the pricing of securities and derivative contracts and the estimate of their economic value and yield;
TRANSVERSAL SKILLS
- to be able to interconnect among each other’s topics faced in different chapters of the course;
- to be able to to present a set of clear and structured arguments dealing with financial intermediation in securities markets and specific profiles of the relevant regulation;
- to be able to read, comprehend and comment technical material from books, financial journals or other sources;
- to know the technical terminology used by professionals in securities markets, at both the domestic and the international level.