POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF ACCOUNTANCY AND FINANCE
DEPARTMENT OF ACCOUNTANCY AND MANAGEMENT ACCOUNTING
COURSE TITLE FINANCIAL MARKETS
COURSE CODE ACCO 20073
CREDIT UNITS 3 UNITS
COURSE PREREQUISITE NONE
COURSE DESCRIPTION This course is intended to help students understand the role of financial institutions and markets play in the business environment that students will face in the future. It also helps students to develop
a series of applications of principles from finance and economics that explore the connection between financial markets, financial institutions, and the economy. Students will learn commercial banks,
investment banks, insurance companies, mutual funds, the Bangko Sentral ng Pilipinas, and their role of in the economy.
Institutional Learning Outcomes
1. Creative and Critical Thinking
Graduates use their imaginative as well as a rational thinking ability to life
situations in order push boundaries, realize possibilities, and deepen their
interdisciplinary and general understanding of the world.
2. Effective Communication
Graduates are proficient in the four macro skills in communication (reading,
writing, listening, and speaking) and are able to use these skills in solving
problems, making decisions, and articulating thoughts when engaging with
people in various circumstances.
3. Strong Service Orientation
Graduates exemplify the potentialities of an efficient, well-rounded and
responsible professional deeply committed to service excellence.
4. Community Engagement
Graduates take an active role in the promotion and fulfillment of various
advocacies (educational, social and environmental) for the advancement of
community welfare.
5. Adeptness in the Responsible Use of Technology
Graduates demonstrate optimized use of digital learning abilities, including
technical and numerical skills.
6. Passion to Lifelong Learning
Graduates are enabled to perform and function in the society by taking
responsibility in their quest to know more about the world through lifelong
learning.
7. High Level of Leadership and Organizational Skills
Graduates are developed to become the best professionals in their respective
disciplines by manifesting the appropriate skills and leaderships qualities.
8. Sense of Personal and Professional Ethics
Graduates show desirable attitudes and behavior either in their personal and
professional circumstances.
9. Sense of National and Global Responsiveness
Graduates’ deep sense of national compliments the need to live in a global
village where one’s culture and other people culture are respected.
Program Outcomes Course Outcomes
BSA and BSMA graduates must demonstrate the ability to review, interpret, evaluate Upon completion of the course, the students will be able to:
financial data and systems in compliance with established policies, procedures, a. describe the financial systems in both local and international setting;
guidelines, agreements and/or legislation. They must be able to link data, knowledge and
b. determine the methodologies to assess the risks involve in financial
insight together with different sources and disciplines to make informed decisions.
markets particularly in debt and equity security trading;
BSA and BSMA graduates should possess active listening skills and the ability to c. identify the agencies that may affect and drive the continuous
effectively communicate one’s point of view, both orally and in writing, at all development of the financial market structure;
organizational levels; be able to explain verbally and/or writing financial, statistical, d. apply the skills and knowledge obtain in accounting and financial
administrative matters/policies/procedures/regulatory matters/audit results at a level reporting; and
appropriate to the audience and must be able to negotiate effectively. e. create strategies on how to handle challenges in entering financial
markets.
BSA and BSMA graduates should develop an ability to work in groups, possess skills to
participate as member of a team or/and contribute to group effort; be able to teach others
new skills; be able to work to the satisfaction of the clients; negotiate and work with
diversity or work well with men and women from diverse backgrounds.
BSA and BSMA graduates must work with the highest standards of professionalism, to
attain higher level of performance and generally to meet the public interest, he must
conform to the ethical standards of the profession that include: Integrity, objectivity and
independence, professional competence and due care, confidentiality, professional
behavior and moral values.
BSA and BSMA graduates should possess general knowledge in gaining and
understanding of the different cultures in the world and developing an international
objective thus, he must possess competency in English language, adaptability to foreign
business practices, level of trainability and good capabilities in dealing with foreign
partners.
BSA and BSMA graduates should not only be conversant with IT concepts for business
systems but sound knowledge on internal control in computer-based systems,
development standards and practices for business systems, management of the adoption,
implementation and use of IT, evaluation of computer business systems, and managing
the security information.
BSA and BSMA graduates should possess broad base of knowledge concerning macro-
environmental, economic and industry issues, business process structures, functions and
practices. It includes knowledge in areas such as economics, quantitative models and
business statistics, organizational behavior, international business, ethics and corporate
governance.
Course Plan

Week Topic Learning Outcomes Methodology Resources Assessment

1 Orientation on class policies and
introduction of the course
Discussion of the course syllabus
After orienting the students about classroom management • Presentation of the grading • Copy of course syllabus
policies and about the topics covered in this course, the system; class management
learner will be able to: policies and the rest of the
• have an appreciation of the coverage of the course syllabus.
• establish order in the class

2 Introduction to Financial Systems and After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
Financial Market able to: discussion • Instructional Materials • Online presentation
• describe the elements of financial systems, particularly • Case study • Online Materials • Online quiz regarding
• Nature and Importance of the financial market; the topic
Financial System • describe the importance of financial market in
• Elements of Financial System maximizing firms profit and wealth; and
• Nature and Importance of • differentiate the different types of financial markets.
Financial Market
• Money Market vs. Capital Market
• Primary Market vs. Secondary
Market

3 Financial Regulation After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
able to: discussion • Instructional Materials • Online presentation
• Role of regulation in the Financial • identify the drivers that will affect the financial • Activity Online Materials • Online quiz regarding
System sustainability; the topic
• Philippine Financial Regulators • recognize the different financial regulators in the
• Drivers of Financial sustainability Philippines; and
• Risk in the Financial Market • identify the risks in the Financial Market.

4-6 Managing Credit Risk in Money After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
Market able to: discussion • Instructional Materials • Online presentation
• identify the different levels and methods of rating • Problem solving Online Materials • Online quiz regarding
• Credit Ratings entities; • Case study the topic
• Credit Information System • make recommendation on the results of liquidity and
• Cost of Debt solvency; and
• Managing Liquidity and • understand how to improve value of collaterals.
Solvency
• Valuation of Collaterals

7-8 Financial Instruments After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
able to: discussion • Instructional Materials • Online presentation
• Traditional Financial Instruments • Describe the different financial instrument; • Problem solving Online Materials
 • Digital Financial Instruments
• Risk on Trading Financial
Instruments
• Accounting for Financial
Instruments
• Identify the limitations or risk in using each financial • Case study • Online quiz regarding
instrument; and the topic
• Describe how financial instruments be valued and
treated in financial reports.

9 MIDTERM DEPARTMENTAL EXAMINATION

10-12 Debt Securities Market After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
able to: discussion • Instructional Materials • Online presentation
• Types of Long-Term Securities • identify different types of bonds; and • Problem solving Online Materials • Online quiz regarding
• Strategies and Challenges in • select the bond or debt security investments that will • Case study the topic
Bond Market yield higher value
• Assessing Bond Value

13-15 Equity Securities Market After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
able to: discussion • Instructional Materials • Online presentation
• Types of Stocks • describe the different types of market capitalization; • Problem solving Online Materials • Online quiz regarding
• Rights vs Warrants • determine value of stocks based on the financial • Case study the topic
• Types of Market Capitalization information made available to them; and
• Stock Valuation (use of Market • describe the rules and regulations applicable for a listed
Value Ratios) corporation.
• Optimizing Transaction Costs

16-17 International Financial Market & After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
Innovations able to: discussion • Instructional Materials • Online presentation
• describe the different factors that affect the strategies in • Field exposure Online Materials • Online quiz regarding
• Nature of International Financial doing international financial market; • Case study the topic
Market • describe the roles of international agencies that may
• Foreign Direct Investments affect the financial market; and
• Currency Exchange • identify the risk that may affect the financial market
• Cryptocurrency strategies.
• Country Risk Premium
• Off-shore Banking Units
• World Bank and International
Finance Corporation

18 FINAL DEPARTMENTAL EXAMINATION

Suggested Readings and References

• CIRC HF 4910 S28 2015, Saunders, Anthony, Financial Markets and institutions, 2015
• CIRC HF 4026 B75 2013, Brigham, Eugene F., Fundamentals of Financial Management, 2013
• CIRC HF 4026 R826 2015, Ross, Stephen A., Financial Management: principles and applications, 2015
• Gitman Lawrence J. and Zutter, Chad J., Principles of Managerial Finance, 13th edition. 2012
• Lascano, Marvin V., Baron, Herbert C., Cachero, Andrew L., Fundamentals of Financial Markets. 2019
Course Grading System
ONLINE MODE OF LEARNING
Class Standing 70%
Quizzes 50%
Assignments and other activities 20%
Departmental examination 30%
Total 100%

Final Grade = (1st Grading Period + 2nd Grading Period)

2

CORRESPONDENCE MODE OF LEARNING

Result from Online Final Departmental Examination 60%
Result from the activities in the modules 40%
Total 100%

Classroom Policy
The allowed number of absences for students enrolled in ACCO 20083 with once-a-week meeting is four (4). Request for excused absences or waiver of absences must be presented upon reporting back to class.
Special examinations will be allowed only in special cases, such as prolonged illness. It is the responsibility of the student to monitor his/her own tardy incidents and absences that might accumulate leading to a
grade of “FA,” (Failed due to Absences). It is also his/her responsibility to consult with the teacher, chair or dean should his/her case be of special nature.

All BSA and BSMA students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical behavior will not be tolerated. Any student found guilty of cheating in examinations
will (at a minimum) receive a grade of 5.0 in the said test.

Consultation Time
Subject to the availability of the subject teacher, student may approach the subject teacher for queries about his/her grade as well as other academic requirements for the subject.

Prepared by: Enhanced by: Reviewed by:

(Sgd.) (Sgd.) (Sgd.)

Dr. Marvin V. Lascano Luzviminda S. Payongayong, CPA Noel A. Bergonia, MBA, CPA
Faculty Member Faculty Member Chairperson, Department of Accountancy

(Sgd.) (Sgd.)
(Sgd.) Maria Luisa U. Oliveros, CPA Marietta M. Doquenia, MBA, CPA
Dr. Herbert C. Baron, CPA Faculty Member Chairperson, Department of Management Accounting
Faculty Member

(Sgd.)
Andrew Timothy L. Cachero, CPA, MBA
Faculty Member
 Recommending Approval:

(Sgd.)
Dr. Julieta G. Fonte, CPA
Dean, College of Accountancy and Finance

Approved by:

(Sgd.)
Dr. Emanuel C. De Guzman
Vice President for Academic Affairs

Revised September 2021