Mechanical Engineering (English)
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

General course introduction information

Course Code:

FNS303

Course Name:

Financial Markets and Institutions

Course Semester:

Fall

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	6

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

Compulsory

Course Level:

Bachelor

TR-NQF-HE:6. Master`s Degree

QF-EHEA:First Cycle

EQF-LLL:6. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Dr.Öğr.Üyesi TURGAY MÜNYAS

Course Lecturer(s):

Dr.Öğr.Üyesi TURGAY MÜNYAS

Course Assistants:

Course Objective and Content

Course Objectives:

The aim of this course is to provide students with; the structure of the financial system; stylized facts about the financial system; asymmetric information in financial markets; adverse selection and moral hazard; dynamics of financial crises; interest calculations; money markets; the bond market; stock market and market efficiency; mortgage market; foreign exchange market; to effectively convey information about the international financial system and financial regulations.

Course Content:

• Bond market and its functioning
• Risk and maturity structure of interest rates
• Simple stock valuation: Dividend Growth Model
• Efficient market hypothesis
• The concept of asymmetric information in financial markets and its effects
• Being a rational individual with ethical rules and professional and ethical responsibility awareness in financial market transactions and taking science as a guide.
• Differences in financial crises in developed and developing countries
• Distinguishing features of money, mortgage, mutual fund markets and fundamentals of investment banking

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
1) Explain the structure of the financial system, stylized facts about the financial system, asymmetric information in financial markets, adverse selection and moral hazard
2) Discuss the concept of asymmetric information and its effects in financial markets, explain the bond market and its functioning, interpret the risk and maturity structure of interest rates, explain simple stock valuation.
2 - Skills
Cognitive - Practical
3 - Competences
Communication and Social Competence
1) Explain ethical rules in financial market transactions and to be a rational individual with professional and ethical responsibility awareness and to evaluate the issue of taking science as a guide.
Learning Competence
1) Distinguish the differences between financial crises in developed and developing countries
Field Specific Competence
1) Evaluate the distinctive features of money, mortgage, mutual fund markets and the fundamentals of investment banking
Competence to Work Independently and Take Responsibility

Lesson Plan

Week	Subject	Related Preparation
1)	• Syllabus. • A simple schematic representation of the structure of the financial system. • Business ethics in financial market transactions. • Discussing the distinction between debt and equity markets. • Explain the difference between primary and secondary markets. • Distinguishing money and capital markets.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
2)	• Explanation of the asset demand theory. • Examining the effect of welfare, expected return, risk and liquidity on asset demand. • Determination of supply and demand functions in the bond market. • Discussion of the Fisher effect with the help of the bond market. • Examining the effect of growth on interest rates through the bond market.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
3)	• Explanation of the asset demand theory. • Examining the effect of welfare, expected return, risk and liquidity on asset demand. • Determination of supply and demand functions in the bond market. • Discussion of the Fisher effect with the help of the bond market. • Examining the effect of growth on interest rates through the bond market.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
4)	• Explaining the effect of default risk on the risk structure of interest rates. • Explaining the effect of liquidity risk on the risk structure of interest rates. • Explaining the effects of tax practices on the risk structure of interest rates. • Discussing the maturity structure of interest rates within the framework of the theory of expectations. • Discussing the maturity structure of interest rates within the framework of segmented markets and liquidity premium theories.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
5)	• Share pricing based on the single-period method. • Share pricing with dividend valuation method. • Analysis of the Gordon Growth Model. • Calculations using the Price-Earnings valuation method. • Discussion of equilibrium in the stock market.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
6)	• Weak form (soft assumptions) description of market efficiency. • Strong form (soft assumptions) narrative of market efficiency. • Analysis and discussion of empirical findings on market efficiency. • Discussion of various practices for market efficiency	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
7)	• Discussion that stock markets are not the most important factor in external financing of businesses. • Discussion that the issuance of debt instruments is not the most important factor in external financing of enterprises. • Discussion of indirect and direct financing issues. • Explaining the concept of adverse selection. • Explaining the concept of moral hazard.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
8)	Midterm Exam	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
9)	• Financial crisis analysis in developed countries; Phase One: The Beginning of the Crisis. • Financial crisis analysis in developed countries; Stage Two: Banking Crisis. • Financial crisis analysis in developed countries; Stage Three: Debt deflation. • Financial crisis analysis in developing countries; Phase One: The Beginning of the Crisis. • Financial crisis analysis in developing countries; Second Stage: Currency Crisis. • Financial crisis analysis in developing countries; Third Stage: Fully-fledged financial crisis.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
10)	• Why do we need money markets? • Discussion of the cost advantages of money markets. • Description and analysis of bonds. • Explanation of the interbank money market. • Explaining and discussing the concept of REPO.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
11)	• Analysis of mortgage rates. • Analysis of mortgage loan terms. • Discussion of mortgage loan amortization. • Description of mortgage-backed securities. • Discussing the real estate bubble and the 2007-2009 crisis in the USA.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
12)	• Discussion of partnership and benefits of mutual funds. • Distinguishing open-ended and closed-end funds. • Defining the concept of Net Asset Value. • Analysis of the purposes of stock, bond, money market and index funds. • Discussion of hedge funds. • Discussion of the types of pension funds.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
13)	• Underwriting explanation in bond and share issuance. • Discussion of new types of share issues: share sales and mergers and acquisitions. • Discussion of brokerage and dealership services. • Discussing the relationship between commercial banks and intermediary institutions. • Identification of venture capital sharing companies and comparison with private equity funds.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
14)	• Analysis of the Fisher effect. • Explaining the effect of growth on interest rates with the help of the bond market. • Analysis of the Gordon Growth Model. • Yield curve analysis. • Discussion of the mortgage market and the 2007-2009 Financial Crisis. • Discussion of investment banking and securitization processes.	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
15)	Final Exam	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144

Sources

Course Notes / Textbooks:	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144
References:	Finansal Piyasalar ve Kurumlar, Turgay MÜNYAS, Ekin Yayınevi. 1. Baskı, 2016. ISBN : 9786053274230 Sermaye Piyasası ve Borsa, Selim Soydemir ve Abdullah Akyüz, Scala Yayıncılık. ISBN: 9786054650552 Para ve Döviz Piyasaları, Prof. Dr. Sadi UZUNOĞLU, Literatür Yayınları, İstanbul, 4. Basım, 2020. ISBN : 9789750408144

Course-Program Learning Outcome Relationship

Learning Outcomes	1	5	2	3	4
Program Outcomes
1) Sufficient knowledge in mathematics, science and engineering related to their branches; and the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2) The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3) The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4) Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5) Ability to design experiments, conduct experiments, collect data, analyze and interpret results to examine engineering problems or discipline-specific research topics.
6) The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7) Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge; ability to write effective reports and understand written reports, to prepare design and production reports, to make effective presentations, to give and receive clear and understandable instructions.
8) Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9) Conform to ethical principles, and standards of professional and ethical responsibility; be informed about the standards used in engineering applications.
10) Awareness of applications in business, such as project management, risk management and change management; awareness of entrepreneurship, and innovation; information about sustainable development.
11) The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
12) In order to gain depth at least one, physics knowledge based on chemistry knowledge and mathematics; advanced mathematical knowledge, including multivariable mathematical and differential equations; familiarity with statistics and linear algebra.
13) The ability to work in both thermal and mechanical systems, including the design and implementation of such systems.

Course - Learning Outcome Relationship

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Sufficient knowledge in mathematics, science and engineering related to their branches; and the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2)	The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3)	The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4)	Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5)	Ability to design experiments, conduct experiments, collect data, analyze and interpret results to examine engineering problems or discipline-specific research topics.
6)	The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7)	Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge; ability to write effective reports and understand written reports, to prepare design and production reports, to make effective presentations, to give and receive clear and understandable instructions.
8)	Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9)	Conform to ethical principles, and standards of professional and ethical responsibility; be informed about the standards used in engineering applications.
10)	Awareness of applications in business, such as project management, risk management and change management; awareness of entrepreneurship, and innovation; information about sustainable development.
11)	The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
12)	In order to gain depth at least one, physics knowledge based on chemistry knowledge and mathematics; advanced mathematical knowledge, including multivariable mathematical and differential equations; familiarity with statistics and linear algebra.
13)	The ability to work in both thermal and mechanical systems, including the design and implementation of such systems.

Learning Activity and Teaching Methods

Expression
Individual study and homework
Lesson
Reading
Homework
Q&A / Discussion

Assessment & Grading Methods and Criteria

Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing)
Homework
Presentation
Bilgisayar Destekli Sunum
Case study presentation

Assessment & Grading

Semester Requirements	Number of Activities	Level of Contribution
Quizzes	2	% 30
Midterms	1	% 30
Final	1	% 40
total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
total		% 100

Workload and ECTS Credit Grading

Activities	Number of Activities	Workload
Course Hours	14	42
Study Hours Out of Class	13	39
Homework Assignments	10	30
Midterms	16	48
Final	10	31
Total Workload		190