Course Outline School: Department: Course Title: Business Graduate Studies CSC Preparation I Course Code: FINA 739 Course Hours/Credits: 56 Prerequisites: Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: N/A N/A Yes Brian Gordon Creation Date: Winter 2013 Revised by: Thomas Barker Revision Date: Winter 2015 Current Semester: Summer 2015 Approved by: Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request.
Course Description The Canadian Securities Course introduces the student to the fundamentals of Canadian investment finance. Topics include: capital markets and financial services, the Canadian economy, financing, listing and regulation, corporations and their financial statements, fixed-income securities, equities, derivatives, analyzing markets and products, the portfolio approach, mutual funds, other managed accounts and products, hedge funds, and financial planning and taxation Students must register with CSI Global Education Inc. (CSI) and with Centennial College to study this course. Registration with both the CSI and Centennial College is mandatory. No student will be permitted to study the course if registered with Centennial College only. Registration with the CSI requires an extra fee in addition to normal tuition fees. It is not necessary for students to purchase hardcopy textbooks as the text may be printed from the CSI website related to the CSC. Students will be given access to the CSI course website within a few days of registering for the CSC with the CSI. Student will then have access to the text and other course support materials. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand how this course and program prepare graduates for success, students are encouraged to review the Program Standard by visiting http://www.tcu.gov.on.ca/pepg/audiences/colleges/progstan/. For apprenticeship-based programs, visit http://www.collegeoftrades.ca/training-standards. Course Learning Outcomes The student will reliably demonstrate the ability to: 1. 2. 3. 4. 5. 6. 7. Advise clients on suitable investment products Describe the Canadian securities industry and the key characteristics of financial intermediaries. Illustrate how regulatory bodies work together to provide rules and regulations that support the industry. Illustrate how general economic conditions influence the performance of the securities markets. Analyze equity securities, fixed income securities and derivative securities. Describe how a company lists its securities on a stock exchange. Analyze a corporation's financial statements Essential Employability Skills (EES) The student will reliably demonstrate the ability to*: 1. Communicate clearly, concisely and correctly in the written, spoken, and visual form that fulfills the purpose and meets the needs of the audience. 2. Respond to written, spoken, or visual messages in a manner that ensures effective communication. 3. Execute mathematical operations accurately. 4. Apply a systematic approach to solve problems. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 2
5. Use a variety of thinking skills to anticipate and solve problems. 6. Locate, select, organize, and document information using appropriate technology and information systems. 7. Analyze, evaluate, and apply relevant information from a variety of sources. 8. Show respect for diverse opinions, values belief systems, and contributions of others. 9. Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals. 10. Manage the use of time and other resources to complete projects. 11. Take responsibility for one's own actions, decisions, and consequences. *There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be assessed in this course. Global Citizenship and Equity (GC&E) Outcomes N/A Text and other Instructional/Learning Materials Text Book(s): All course materials will be available through the CSI course website upon registration for the CSC with the CSI. It is expected that students will have registered and be in possession of course materials by the end of week one. Online Resource(s): The CSI provides a substantial amount of support material for students studying the CSC. This material is available on the CSI website after registration. It is important that students become familiar with this material. Students registering for the CSC will also have access to "CSC Check" at no additional cost. This resource provides sample exams to assist in preparing for the CSC Exam #1 and CSC Exam #2. Material(s) required for completing this course: CSI Registration Follow these instructions carefully when registering: 1. Go to www.csi.ca/psi 2. Read the instructions provided and the FAQ Document. 3. Select your college from the drop down menu provided. 4. Select courses by adding each to the shopping cart. Select and add the check product after first having added the corresponding course. 5. Check out and create a CSI Student profile. Important: to obtain your discount, you must accept the Information Release Consent Form (IRCF) that the system will guide you to complete during the registration process. To obtain the discount, you must accept the Information Release Consent Form (IRCF) that the system will guide you to complete during the registration process. This will allow CSI to share your information with the College.? In the field titled Manager s name : enter Thomas Barker? In the field titled Employee Number : enter your Centennial College student number. This will be used for verification purposes.? Click I accept and continue.? Confirm your registration as guided. All applicable discounts will be applied on the last screen.? If you do not see your discount, ensure that you have accepted the IRCF.? What is the Check product? I was told that because I m a student, I get the Check product free. How do I THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 3
do that?? Answer:? Each of these products is a series of practice questions that support the textbook when preparing for the exam. Students taking any of the above courses through Centennial are eligible to receive the corresponding Check Product for free.? To receive this product for free, you must visit www.csi.ca/psi, choose your school and add the Check Product to your? Shopping cart. At the final stage of the checkout process,? The Check product will come up as $0. Evaluation Scheme Test # 1: CH 1,2,3 Test #2: CH 4,5,6 Assignment #1: Group project researching and evaluating IIROC based current issues Test # 3: Ch 7,8,9 Assignment #2: Case and/or Project Test # 4: Ch 10,11,12 Test # 5: Comprehensive Industry Exam Evaluation Name CLO(s) EES GCE Outcome(s) Outcome(s) Weight/100 Test # 1 2 1, 5, 6 15 Test #2 2 1, 2, 11 15 Assignment #1 2, 3, 4, 6, 7 1, 4, 5, 7, 5 9, 10, 11 Test # 3 4 3, 4 15 Assignment #2 1 5, 6 5 Test # 4 5 4, 5, 7 15 Test # 5 5, 6 7, 8 30 Total 100% If students are unable to write a test they should immediately contact their professor or program Chair for advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious illness, or death of a close family member), students may be able to write a make-up test. All submitted work may be reviewed for authenticity and originality utilizing Turnitin. Students who do not wish to have their work submitted to Turnitin must, by the end of the second week of class, communicate this in writing to the instructor and make mutually agreeable alternate arrangements. When writing tests, students must be able to produce official College photo identification or they may be refused the right to take the test or test results will be void. Student Accommodation It is College Policy to provide accommodation based on grounds defined in the Ontario Human Rights Code. Accommodation may include modifications to standard practices. Students with disabilities who require academic accommodations must register with the Centre for Students with Disabilities. Students requiring accommodation based on other human rights grounds should talk with their professors as early as possible. Please see the Student Accommodation Policy. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 4
Use of Dictionaries Only English Language Learner dictionaries are permitted in class work (English words, idioms, and pronunciations are explained). Only English Language Learner dictionaries are permitted in class work (English words, idioms, and pronunciations are explained). Program or School Policies N/A Course Policies N/A College Policies Students should familiarize themselves with all College Policies that cover academic matters and student conduct. All students and employees have the right to study and work in an environment that is free from discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents of harassment, discrimination, bullying and violence will be addressed and responded to accordingly. Academic honesty is integral to the learning process and a necessary ingredient of academic integrity. Academic dishonesty includes cheating, plagiarism, and impersonation. All of these occur when the work of others is presented by a student as their own and/or without citing sources of information. Breaches of academic honesty may result in a failing grade on the assignment/course, suspension or expulsion from the college. For more information on these and other policies, please visit www.centennialcollege.ca/aboutcentennial/college-overview/college-policies. Students enrolled in a joint or collaborative program are subject to the partner institution's academic policies. PLAR Process This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by which course credit may be granted for past learning acquired through work or other life experiences. The PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably demonstrates achievement of the course learning outcomes. Contact the academic school to obtain information on the PLAR process and the required assessment. This course outline and its associated weekly topical(s) may not be reproduced, in whole or in part, without the prior permission of Centennial College. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 5
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name 1 The Capital Market Chapter 1 Define Investment Capital and describe its Lecture/Discussion role in the economy Describe how individuals, businesses, governments and foreign agencies supply and use capital in the economy Differentiate between the types of financial instruments used in capital transactions Explain the role of financial markets in the Canadian financial services industry. 2 The Canadian Chapter 2 Summarize the state of the Canadian Lecture/Discussion Securities Industry securities industry today. Distinguish among the three categories of securities firms, explain how they are organized and compare and contrast dealers, principals, and agency transactions. Describe the roles of the chartered banks in the capital markets. Describe the role of trust companies, credit unions and insurance companies in the capital markets Describe the roles of investment companies, savings companies, loan companies and pension plans in the capital markets. Evaluation Date 3 The Canadian Regulatory Environment Chapter 3 Identify and describe the agencies and legal entities through which the Canadian securities industry is regulated and evaluate the role of the self-regulatory organizations play in the regulatory process. Discuss the principles that underlie securities legislation. identify unethical practices and conduct in securities trading. Describe the rules of public company disclosure and the statutory rights of investors. Explain how takeover bids and insider trading are regulated and list the investigation and prosecution powers of securities regulators. Lecture/Discussion 4 Economic Principles Chapter 4 Define economics, identify the decision Lecture/Discussion Test #1 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 6
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name makers in an economy, and describe the process of achieving market equilibrium. Define Gross Domestic Product (GDP), explain how GDP is measured, and list the factors that lead to growth in GDP. Describe the phases of the business cycle, distinguish among the economic indicators used to analyze business conditions, and identify the determinants of long-term economic growth. Compare and contrast the two key indicators of the labour market in Canada and the three main types of unemployment. Describe the determinants of interest rates and discuss how interest rates affect the performance of the economy. Define inflation, calculate the inflation rate using the Consumer Price Index (CPI), and analyze the causes and impact of inflation, disinflation and deflation on the economy. Define the accounts included in a country's balance of payments, describe the determinants of the exchange rates, and explain the impact the balance of payments and the exchange rate have on the economy 5 Economic Policy Chapter 5 Compare and contrast the rational, Lecture/Discussion Assignment Keynesian, monetarist, and supply-side #1 theories of the economy. Analyze the mechanisms by which governments establish fiscal policy and evaluate the impact of fiscal policy on the economy. Explain the role and function of the Bank of Canada. Analyze how the Bank of Canada implement and conducts monetary policy. Discuss the challenges governments face in their fiscal and monetary policies and the consequences of failed policies 6 Fixed Income Securities: Features and Types Chapter 6 Describe the Fixed-income market and discuss the rationale for issuing debt instruments. Define the terms used in transactions Lecture/Discussion Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 7
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name involving bonds, describe band features, explain the use of sinking and purchase funds, and describe the protective provisions found in a bond indenture. Compare and contrast the types of Government of Canada securities. Compare and contrast the different types of provincial government securities and municipal debentures. Identify the different types of corporate bonds and describe their features. Describe the features of term deposits and guaranteed investment certificates. Interpret bond quotes and summarize and evaluate bond ratings 7 Fixed Income Chapter 7 Define the present value and the discount Lecture/Discussion Test #2 Securities: Pricing and rate of a bond and perform calculations Trading relating to the time value of money, bond pricing and yield. Define a real rate of return and yield curve. Evaluate three theories of interest-rate determination. Analyze the impact of fixed-income pricing properties on bonds prices. Explain the rationale for bond switching and describe bond switching strategies. Summarize the rules and regulations of bond delivery and settlement. Assess the role of bond indexes in the securities industry 8 Equity Securities Chapter 8 Discuss the benefits of common share Lecture/Discussion ownership; describe how dividends are taxed, declared, and claimed; and describe the impact of stock splits and consolidations on shareholders. Discuss the position, advantages and disadvantages, and special provisions of preferred shares; describe their features, and perform related calculations. Differentiate between a stock market index and an average, and summarize the important stock market indexes and averages. Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 8
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name 9 Equity Securities: Chapter 9 Distinguish between cash and margin Lecture/Discussion Equity Transactions accounts. Calculate margin requirements for the long and short positions. Describe the process of short selling and discuss the risks associated with short selling. Describe the trading and settlement procedures for equity transactions. Distinguish among the types of buy and sell orders. 10 Derivatives Chapter 10 Describe what a derivative is and explain the Lecture/Discussion Test #3 differences between over-the-counter and exchange-traded derivatives. Identify the types of underlying assets on which derivatives are based. Describe the participants in and the uses of derivatives trading. 11 Derivatives - Part 2 Chapter 10 Describe what options are and how they are traded, and evaluate call and put option strategies for individual and institutional investors and corporations. Describe what forwards are and distinguish futures contracts from forward agreements and evaluate futures for investors and corporations. Define and describe rights and warrants, explain why they are issued, and calculate the value of rights and warrants. 12 Financing and Listing securities Chapter 11 Compare and contrast the three types of business structures and explain the process, outcomes, and advantages and disadvantages of incorporation. Describe the processes by which governments raise debt capital to finance their funding requirements. Describe the processes by which corporations raise debt or equity capital to finance their funding requirements Summarize the steps in the corporate financing process, explain the different methods of offering securities to the public, summarize the prospectus system, and evaluate after-market stabilization. Lecture/Discussion Assignment # 2 due via dropbox Lecture/Discussion Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 9
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name Identify other methods of distributing securities to the public through stock exchanges. Discuss the advantages and disadvantages of listing shares for trading on an exchange and explain the circumstances and ways in which exchanges can withdraw trading privileges. 13 Corporations and their Chapter 12 Describe the format and the items of the Lecture/Discussion Test #4 Financial Statements balance sheet and explain how the items are classified. Describe the structure of the earnings statement and explain the sources of net income 9or net earnings). Describe the purpose of the retained earnings statement and describe its link with the balance sheet and earnings statement. Describe the components of the cash flow statement and classify and accounting activity or item as a cash flow from operating, financing, or investing activities. explain the importance of the notes to the financial statements and the auditor's report. 14 Review Materials - Summary Chapters 1-12 Summary Materials: Chapters 1-12 Summarize all materials covered to date Lecture / Discussion Test #5 Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 10