Financial Literacy: Finding Your Way in the Financial Markets

Overview

Course No. 5831

Take better advantage of the markets and build your personal wealth with this course that connects the larger world of finance to the everyday investment decisions you engage in. With record-breaking highs one minute and economy-rocking lows the next, it can seem as if there’s no way to feel truly comfortable in the mysterious world of finance. However, “Financial Literacy: Finding Your Way in the Financial Markets” serves as an essential primer on the field, covering both its strengths and vulnerabilities.

In 24 engaging lectures, an award-winning Duke University professor reveals the interconnected workings of financial markets, showing how society’s financial health—and your own—depend on money flowing through these channels. You’ll gain an appreciation for the variety of financial products and services available and understand how individual transactions affect the broader system. Whether financing a car, applying for a mortgage, receiving a preapproved credit card offer, participating in your company’s 401(k), or making a deposit at your local bank, this course provides the concepts and tools needed to connect global headlines with your local financial landscape.

By the final lecture, you’ll feel newly at ease in the realm of stocks, bonds, derivatives, and credit, equipping you to make informed decisions for your financial future.

Course Structure

1. Feeling at Home in the Financial Markets (30 min)

• Understand the societal functions of financial markets and how they connect to real assets through contracts.

1. Where the Money Goes (29 min)

• Explore the financial market’s worth, money flow, and its distribution among businesses, governments, and households.

1. Financial Markets Run on Information (30 min)

• Discover the concept of asymmetric information in finance and ways lenders mitigate risks.

1. Giving Credit Where Credit Is Due (29 min)

• Examine the inner workings of credit analysis and how credit scores are calculated.

1. The Fine Print (29 min)

• Learn to interpret loan contracts, from car loans to credit card statements.

1. What Is Special about Banks? (28 min)

• Discover how banks function and their historical evolution from goldsmiths’ vaults.

1. Billion-Dollar IOUs: Using Bonds to Borrow (30 min)

• Understand the bond issuance process and its significance in financial markets.

1. The Double Identity of Stocks (29 min)

• Explore how stocks work, their issuance, and the responsibilities of stockholders.

1. The Sell Job (31 min)

• Learn about the process of getting stocks into the market through the SEC.

1. The Mysterious Money Market (30 min)

• Differentiate between the money market and capital market, focusing on key instruments.

1. Think Globally, Lend … Globally (30 min)

• Investigate the Eurodollar market and how international borrowing works.

1. Trading Securities (30 min)

• Learn the basics of securities trading and its transformation through technology.

1. Returns and Prices in the Secondary Market (30 min)

• Understand the significance of market indices and how returns are calculated.

1. The Truth about Pricing (29 min)

• Discover theories and methods used by traders to determine asset values.

1. A Tale of Two Funds (28 min)

• Examine the differences between mutual funds and hedge funds, including trading strategies.

1. The Market for Corporate Control (30 min)

• Delve into mergers, acquisitions, steep stock swaps, and corporate governance.

1. What Companies Tell the Markets (29 min)

• Analyze the financial disclosures required by publicly held companies.

1. What Moves the Markets (29 min)

• Learn about key economic indicators that signal market shifts.

1. When Central Banks Talk, Markets Listen (30 min)

• Understand the roles and powers of central banks in affecting market interest rates.

1. Interest Rates as Indicators (29 min)

• Explore benchmark rates and their significance in understanding economic health.

1. Risk Management and Insurance (28 min)

• Learn about different types of risks and how individuals and companies manage them.

1. Mortgages and Securitization (31 min)

• Investigate the mortgage market and the process of securitization.

1. The Whys and Hows of Financial Regulation (31 min)

• Delve into the necessity and methodologies behind financial market regulation.

1. The Future of Finance (32 min)

• Explore emerging trends in finance, including peer-to-peer lending and personal responsibility for financial well-being.