Knowledge/understanding:
- knowing why financial markets and institutions exist, how they function and how they are structured and organized
- knowing the main constraints affecting the functioning of markets and institutions, especially towards efficiency, information asymmetries and financial crises
- knowing the contractual features of leading financial products and services
- knowing similarities and differences of financial markets and institutions at the international level

Applying knowledge/understanding:
- describing the main features of financial markets and institutions
- describing the mechanics and distortions caused by information asymmetries and financial crisis
- evaluating financial products and services
- describing financial intermediation at the international dimension

Making judgments:
- evaluating differences in risk and return of the main financial instruments
- evaluating the performance of the main classes of financial intermediaries
- selecting markets and institutions consistently with the needs of families and firms

Communication skills:
- understanding and applying the technical language specific to financial markets and institutions
- expressing knowledge and opinions effectively on the main features of financial instruments, markets and institutions

Learning skills:
- autonomously research data on financial instruments, markets and institutions
- autonomously manage and interpret financial data

Preconditions (knowledge needed to successfully attend this course assumed already acquired by students): Financial Mathematics, Macroeconomics.

Propedeuticities: Accounting.

6 ECTS – 45 hours This course aims at explaining the functioning of financial markets and their economic role, with a focus on financial institutions and their products and services. The course looks mainly at the Italian market, however with frequent references to other countries (Europe, US, Rest of the World), for the purpose of evidencing similarities and differences, and of underlining the role of international relationships. Main topics 1) MARKETS - The financial system: markets, intermediaries, products and services - Interest rates: role, determinants, the term structure, yield to maturity and duration - Efficiency of financial markets and behavioral finance - Money markets - Bond markets - Stock markets - The mortgage market - The Forex 2) INSTITUTIONS - Financial crises - Central banks and monetary policy - Banks - Mutual funds - Insurance and pension funds - Other intermediaries - Derivatives SEMINARS: typically, topics covered in past years include the role of ESG scores in financial markets, Islamic Finance, trading, commodities (conditional to speakers' availability).

Mishkin, Eakins, Beccalli (2025), Istituzioni e mercati finanziari, X Edition, Pearson. Earlier versions are still good, but they are likely not up to date. It is recommended to constantly interpret specialized media and to read references and do exercises as suggested in the textbook (including the online material offered by the editor).

The following list links class topics to book chapters (numbers may differ due to different book editions, some chapters are available only online). The financial system: 1, 2, 3, 4, 8, E16 Interest rates: 12, 18, E18 Market efficiency: 19 Financial crises: 5 Central banks and monetary policy: 16, 17 Banks: 6, 7, 13, 14 Mutual funds: 9 Insurance and pensions: 10 Securities' industry: 11 Money market: 20 Bond market: 21 Stock market: 22 Forex: 23 Derivatives and risk management: 15, 24 Behavioural finance, other credit institutions, mortgage markets: class material and references Markets: 20, 21, 22, 23, E16 Institutions: 6, 7, 13, 14, 9, 10, 11, 15, 24

This course takes place entirely with physical presence. Physical presence takes place through traditional front lectures, encouraging the active participation of students, the discussion of market data or real-life cases, the development of exercises, simulations, and role-playing. Usually, a few seminars held by other lecturers or professionals of financial markets are organized during the course.
Participating to classes is a free choice, but strongly encouraged.
During the teaching period activities will also involve, in class or in distance learning, interactive simulations, tests and exercises.

Students are advised to access regularly to the teaching materials and additional information provided on Moodle and MS Teams. Non-attending students are encouraged to get in touch with the lecturer in due time if they need explanations or additional readings.

Grading is based on a final written exam and a non-mandatory oral exam.
The written exam is required for all students. It consists of three parts: 1) ten multiple choice questions; 2) one open question with short answer; 3) one numerical exercise.
Multiple choice questions address basic concepts of this course, such as definitions and overarching features of financial markets, institutions and instruments. Each question has 4 alternatives, of which only one is correct. Each correct answer is worth 1 point and there is no penalty for wrong answers. However, it is required to provide a correct answer to at least 5 of these 10 questions, otherwise the test will be considered failed. Examples of these questions are covered during classes.
The open question addresses a more advanced understanding of one of the topics covered during classes. It requires a short answer, no longer than 10 handrwitten lines. The focus is on the ability to correctly identify and describe the most relevant aspects pertaining to the topic. A few examples: 1) Describe the most relevant assets and liabilities (or revenues and costs) of a financial institution; 2) Describe the main players (or instruments) pertaining to a specific financial market; 3) Illustrate the main advantages and disadvantages of a specific financial performance metric (such as the yield to maturity, the duration, the dividend discount model, etc.). This question is worth up to 10 points, awarded on the basis of the correct identification of the most relevant contents pertaining to the question, and the quality of the explanation (level of knowledge, proper use of technical language, ability to sum up).
The numerical exercise will require participants to provide a specific calculation for a financial performance metric that was presented and discussed during classes. A pocket calculator can be used. The exercise is worth up to 10 points, awarded on the basis of the correctness of the calculation and the quality of the explanatory text that is strongly suggested to add in order to help the lecturer's review process.
The exam, assuming that at least 5 multiple choice questions are right, is passed with a total score of at least 18, summing its three parts.
The oral discussion is non mandatory and it is designed for those aiming at higher grades. The choice is given to participants obtaining at least 25 in the written exam. Who does not wish to take this chance will get a maximum grade of 25, even if their starting score is higher. The oral discussion can increase this value up to the maximum grade, but can lead on a downgrade of maximum 2 points if the performance is particularly poor. With a score between 18 and 24 no oral will take place and the grade will be confirmed. With 25-30 from the written exam, those choosing not to take the oral exam will get 25. Those taking the chance will get from 2 grades lower (23 with a score of 25, 24 for 26, and so on) to 30 with honors.
The oral discussion is based on one or two questions, for a total of 5-15 minutes (the shorter the better is the outcome). The questions require to apply evaluation tools in a real-world scenario taken from financial markets, institutions, instruments or recent news on them. The purpose is to demonstrate higher levels of understanding, competence, critical thinking and application of knowledge. The oral exam will typically take place one or two days after the written exam, but for qualified needs (family care, transportation issues, work-related problems, ...) the correction and the oral exam can take place immediately after the written exam.

The main aims consistent with the Sustainable Development Goals targeted by part of this course's contents are: 1. No poverty: a few classes are dedicated to discuss the relationship between financial institutions and household savings/borrowings/risk management, and what role is played by financial education in promoting a sustainable financial behaviour. 2. Good health and well-being: a few classes are dedicated to the issue of the ageing society, and how pensions can address this basic need of people. 3. Decent work and economic growth: a few classes are dedicated to the issue of work ethics in financial institutions, and how it may promote growth and reduce the risk of tail events in the financial system 4. Industry, innovation and infrastructure: a few classes are dedicated to the FinTech phenomenon, and how it may addess sustainability and inclusion issues in the financial sector 5. Reduced inequalities: a few classes discuss how financial education may promote greater economic/financial resilience and equality for households, with the contribution of financial institutions.