First section

Introduction to financial system

• Short description of financial system
• The role of banks and credit institutions.
• An economic analysis of system’s structure
• Financial crises and economic growth.

Second section

Introduction to Banking

• Balance and banking management.
• Risk management
• Financial innovation
• The industry of banking and its competition.

Third section

Investment Banking

• The investment banking as a separated category of services.
• The history of investment banking.
• Its new structure (divisions and services).

Forth section

The basic services

• Private Investment.
• Mergers & Acquisitions
• Underwriting services and IPOs.
• Issuance of bonds

Fifth section

Management of Investment Assets

• Mutual funds
• The role of intermediary
• Market making and
• Hedge funds.

Sixth section

Financial innovation

• Securitization
• ABS and CBO’s
• The role of financial innovation on the financial crisis of 2007-2009.

The main subject of the course is the study of the investment banking which mostly deals with the underwriting services, the consultancy for mergers and acquisitions and the investment asset management. The course focuses on the theoretical contribution of the investment bankers on the reduction of information asymmetry, on the facilitation of the efficient capital flow and more fair allocation of available capital regarding the production potentiality and finally on their contribution on the reduction of systemic and non-systemic risks.

After the successful completion of the course a student will be able to:
• Understand the basic rules that govern the capital flow in modern money and capital markets.
• Evaluate the contribution of underwriters on the issuance procedure and on the secondary markets of the bonds and equities.
• Recognize the risks of the capital markets and the conflicts of interests that occur among the participants.
• Understand the needs for frequent updating and restructuring of the regulations that govern the capital and financial markets.

• Autonomous work
• Team work
• Work in inter-scientific environment
• Adjustment in new conditions

Writing exams (80%) that includes 10 writing questions on the taught material. More precisely,

– Questions that shows whether students have understood the material.

– Judgment questions

– Questions that indicate whether students can think productively and critically regarding the material of the course.

Team work (20%) that has to do with a case study on a topic related to the material such as a recent IPO, a recent big merger etc.

– Recommended Bibliography: 

• Mishkin, F. Stanley, E.: “Financial Markets and Institutions”.
• Stowell, D.: “An introduction to Investment Banks, Hedge Funds and Private Equity”.
• Liaw, T.: “The Business of Investment Banking”.
• Williamson, P.: “The Investment Banking Handbook”.
• Willis, P. and Bogen, J.: “Investment Banking”.

– Related scientific journals: