Money, Financial Institutions and Markets

The course provides a comprehensive exploration of the modern financial system. Beginning with fundamental financial calculations, it progresses through various aspects of financial markets, covering traditional assets like stocks and bonds, as well as investment vehicles such as ETFs and alternative investments. The second half of the course examines derivatives markets, the interaction between financial cycles and policy, and behavioral aspects of finance at both individual and market levels. Special attention is given to financial institutions, market regulation, and emerging trends in financial markets. Throughout the course, theoretical concepts are complemented by practical applications, including portfolio construction using ETFs and analysis of current market developments. The course concludes with student group projects that demonstrate practical application of the learned concepts.

NB! This course will take place in autumn semester 2025/2026 which starts on 1st of September and ends on 25th of January (you can find that information under Start date section). TalTech's timetables for Autumn semester 2025 will be published at the end of June via tunniplaan.taltech.ee. Switch the page to English and use "Search" and "Open detailed search" to find your course. NB! Some courses are taught by several lecturers during the same semester. Make sure that the course name and lecturer/teacher infromation of your course match with the information given in the Course Catalogue.

After completing the course, a student:

• understands the structure and functions of financial markets, intermediaries, and central banks, and their impact on firms and individuals;
• can evaluate different financial instruments (stocks, bonds, derivatives) and their characteristics, including risk-return profiles and market behavior;
• can perform key financial calculations, including market index computations, rates of return, and basic valuation of financial instruments;
• can analyze financial market data and trends using simple Python programming (with AI assistance for code writing and data analysis);
• can construct a diversified investment portfolio using ETFs, using practical tools and data to align with specific financial goals;
• understands behavioral finance concepts, including how individual and market-level behaviors interact with financial markets;
• can conduct structured financial research in a group setting using various data sources to address real-world financial questions.

Final assessment can consist of one test/assignment or several smaller assignments completed during the whole course. After declaring a course the student can re-sit the exam/assessment once. Assessment can be graded or non-graded. For specific information about the assessment process please get in touch with the contact person of this course. For specific information about grade transfer please contact your home university

Prerequisites (but not strict): Basic Finance

• The course does not follow a textbook. Study materials are provided in Moodle.

lectures, exercises