AF4036 - Principles and Theories of Finance

You will learn the principles and theories of finance through lectures (24 hours), workshops (12 hours), tutor directed learning (82 hours) and independent learning (82 hours). In the lectures, the tutor will enhance your understanding of key concepts and subject material to enable you to meet the module learning outcomes. The lectures will be interactive and make use of both technology and current financial news and events to encourage your engagement. The workshops are an opportunity for you to further develop your understanding and knowledge of the topics by exploring them using real-time financial information and data available from financial software in the NBS Trading Room. Further, you will be undertaking both directed and independent learning. Directed learning will include a range of activities including pre-reading, preparation for workshop activities and presentations and learning how to use the trading software. Independent learning facilitates your engagement with areas of interest within finance through a range of activities such as reading, reflection and research.

You will be supported by a teaching and learning plan (TLP) that outlines the pattern and content of formal sessions, tutor-directed and independent study. All learning and teaching materials will be available through the e-learning module Blackboard site. Your lectures will be recorded and uploaded to the e-learning portal which you will be able to access to consolidate your knowledge and develop understanding. You will have access to the NBS Trading room, located in the Business School where you will be expected to build up your financial software proficiency. A series of on-line recordings will be provided to help you. Support will include feedback from tutors during small-group workshops and tutorials as well as opportunities for face-to-face and online assistance including informal feedback. You will have access to a range of reading and multi-media materials via the online reading list.

All modules at Northumbria include a range of reading materials that students are expected to engage with. Online reading lists (provided after enrolment) give you access to your reading material for your modules. The Library works in partnership with your module tutors to ensure you have access to the material that you need.

Knowledge & Understanding (KU):
• You will describe the principles, concepts, theories and terminology underpinning the subject of finance demonstrating an ability to interpret financial market information (MLO1).
• You will demonstrate an understanding of the trading software used to contextualise different financial theoretical concepts (MLO2).

Intellectual / Professional skills & abilities (IPSA):

Personal Values Attributes (PVA):
• You will demonstrate an understanding of the current global markets and learn from past real-world examples of cultural and ethical financial behaviour (MLO3).

Formative assessment:
This will take place through group work, case study activities and theory/practice related discussions with your tutor in the workshops. As part of your formative assessment you will undertake a series of online modules accessed via the NBS trading terminals to assess your ability to understand the trading software. You should be aware that formative feedback can, and will, occur in any communication with the academic tutor.

Summative assessment:
The module will be assessed by one element:
Closed book 2 hour examination that will comprise of two sections:
Section 1: Multiple Choice Questions (80%) to assess your understanding of the module content (MLO1 and MLO2).
Section 2: An essay style question (20%) to test your understanding of how basic principles and theories relate to a real-world case study (MLO3).

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This module provides you with an introduction to underpinning financial concepts upon which your degree will be based. You will learn about the financial system; interest rate theory; foreign exchange rate dynamics and the operation of the money, fixed income and equity markets. You will be introduced to a range of financial instruments including collective investments and socially responsible investments. You will learn about the concepts of utility, stock market efficiency, portfolio theory and the capital asset pricing model (CAPM). To apply the knowledge acquired in this module you will use real-time financial data extracted from leading financial software located in the NBS Trading Room. You will be required to use real-world data to enhance your skills in Microsoft Excel which are essential for both placement and graduate employability.