How The Financial Markets Really Work



Financial Markets and their jargon can be really confusing to those not involved.   This one day course gives a concise and effective overview as to what the Financial Markets are and the nature of their main products for those with no prior knowledge. 




  • IT, HR and other specialists new to the City
  • New staff in Financial Institutions

 Overview and Introduction


        Functions of the worlds Financial Markets Transferring Funds and Risk

        What are efficient Markets? Markets as forward discounting mechanisms

        Role of the Regulator

        Sell-Side (Investment Banks) vs Buy-Side (Institutional Investors)

Foreign Exchange Markets


        Overview and scale of the FX markets

        Currency Popularity - Dollars, Euro, Sterling, Yen.

        Spot, Cross and Forward Exchange rates; Interest Rates and Carry Trades

The Bond Markets


        Fixed Income basics what is a Bond exactly?

        The importance of Sovereign Debt Markets, Risk free investing?

        Bond Pricing Coupons and Yields

        Sub-Prime & the Credit Crunch explained

        Corporate Bonds and Credit Ratings importance of the Rating Agencies


The Equity Markets


        Equities in context Shareholders at the end of the food chain

        Corporate actions in the secondary markets Share Splits, Rights Issues

        What makes shares go up and down?

        Equity Pricing explained Price/Earnings Ratios, Dividend Yields



Commodities and Derivatives Markets - Options, Swaps, Futures

  • Derivatives, what are they exactly?  Exchange Traded vs OTC
  • Options - Terminology, for Hedging or Speculation?
  • Swaps - Interest Rate and Credit Default swaps; importance of counterparty risk
  • Futures - Margin requirements and Leverage - Risk and exposure, role of the Clearing House 

Todays Date:

Duration 1 day
Available as an In house tailored course at your offices

Investment Education PLC
45 Old Hall Road, Manchester M7 4JF, United Kingdom
Tel:+44 (0)161 832 3800
Registered in England Number 2129160
VAT Registered Number GB 480 2112 85

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