Obiettivi formativi
The course provides students with a solid understanding of the internal and external factors that shape centralized and decentralized financial markets.
The second half of the course focuses on understanding and evaluating the opportunities that arise from new technologies, whether decentralized or not.
Students will acquire some basic skills to write, articulate, and present the business plan of a decentralized startup and develop an analytical and critical approach, starting from practical perspectives.
Risultati di apprendimento attesi
The course will provide a solid knowledge of finance. In particular, the intended learning outcomes are reported below in greater detail.
Knowledge and understanding:
The course will cover the theoretical and methodological foundations of decentralized and centraliced finance, which allows to evaluate financial markets and Fintech, by deepening the market functioning and to the role of Fintech institutions. It will offer also practical tools to manage real financial problems.
Applying Knowledge and Understanding:
The student will be able to quantify the value of financial assets and fintech projects, taking market dynamics and innovative financing methods into account. They will compute expected changes in stock prices due to these financial decisions, understand the functioning of financial markets, and evaluate the impact and operations of fintech companies. A written test (final test) and test simulations will reinforce the student's learning process.
Making Judgments:
The student, using the methodologies acquired during the course, will develop the ability to collect and interpret real financial data to analyze investment decisions and assess value creation processes in the context of financial markets and fintech innovations. The course will involve solving real business cases both at the market level and within fintech enterprises.
Communication Skills:
At the end of the course, the student will be able to use the technical and business vocabulary of the financial markets and fintech sectors, addressing decision-making issues with precision. Through various activities such as lessons with discussions, case study analyses, and practical sessions, students will enhance their ability to communicate financial analyses both in writing (reports and exercises) and orally. Communication skills will be focused on the critical analysis of financial market problems and fintech innovations, as well as the ability to develop and present concrete solutions both in team settings and to the class. Students will be required to present on a financial markets or fintech topic to improve their communication abilities.
Learning Skills:
Students will acquire the knowledge and analytical tools necessary to address financial problems in a complex and evolving context, particularly within financial markets and fintech environments. They will gain theoretical and practical knowledge to evaluate the functioning of financial markets and fintech firms. These skills will enable them to independently deepen their understanding of the topics covered and pursue further studies as outlined in the Degree Program, as well as to apply their learning experiences in the workplace.
Prerequisiti
Basic mathematics and statistics
Contenuti Del Corso
The functions and the components of the financial system, financial intermediaries, financial instruments, Banking regulation.
Introduction to Blockchain
Bitcoin
Web3 Markets
Tokenization
Testi Di Riferimento
FINANCIAL MARKETS AND INSITUTIONS,
Mishkin - Stanley G. Eakins, Global Edition
Chapters from the book "Market Liquidity: Theory, Evidence, and Policy" - Thierry Foucault, Marco Pagano, Ailsa Röell (LINKS BELOW)
Slides and extra material provided by the professors.
Suggested extra readings:
Pedersen N Financial Technology. Korgan Page.
Metodologie Didattiche
Each week topics on finance are discussed, based on the course’s main literature. In addition, students, in groups, will analyze and discuss case studies relating to the topics studied in class. The case study analysis is part of a written group work. Students are invited to actively participate and contribute during classes.
Modalità di verifica dell'apprendimento
Students are expected to review the required material before class and to participate in the class. Students are encouraged to ask questions during class and will be given the chance to answer questions.
Details regarding the grading criteria for class participation will be provided during the classes.
Assessment:
(1) Final exam (30%);
(2) Project Work (40%);
(3) Multichoice test (20%)
(4) Cases in class (10%)
Cases will be solved by the students (in groups) during the tutorials and graded as class participation.
Attendance and participation to the group activities is compulsory unless specific exemptions that need to be discussed with the professor before the beginning of the lectures, by the end of the first week.
Criteri per l’assegnazione dell’elaborato finale
Research proposal
Settimana 1
What are financial markets, Instrument types, first and secondary markets.
Ch1 - Ch 2
How Markets price stocks, The Theory of Rational Expectations
Ch 7 Ch 8
Settimana 2
Market design
link to the Material: https://academic.oup.com/book/55158/chapter-abstract/424077448?redirectedFrom=fulltext
Settimana 3
Trading mechanisms, Liquidity.
Links to the material:
https://academic.oup.com/book/55158/chapter/424078167?login=true
https://academic.oup.com/book/55158/chapter/424079317?login=true
Settimana 4
Algorithmic Trading
Link to the material:
https://academic.oup.com/book/55158/chapter/424085051?login=true#424085078
Regulation
Ch 10
Settimana 5
Money and Money Supply
Ch3, Ch 15
Settimana 6
Multichoice test.
Introduction to blockchain.
Settimana 7
In-depth study of Bitcoin, consensus mechanisms, and mining.
Settimana 8
Ethereum, Decentralization and DeFi.
Settimana 9
ICO, Whitepaper, Tokens, NFTs. Case study: Gamestop.
Settimana 10
Web3 markets. Case Study FTX.
Settimana 11
Tokenization, "metaverse" and critical approach.
Decentralized Autonomous Organizations (DAOs).
Settimana 12
Experiences of virtual and augmented reality.
Group project presentations.