Development of an Enterprise

Module 3

European Capital Markets Law

Prof. Dr. Christoph Kumpan

Capital markets are the beating heart of market-based economies. Stock exchanges and other multilateral trading facilities or bilateral trading venues offer companies the opportunity to raise capital by issuing shares and other instruments, and investors to invest their money for retirement provisions, speculation or other purposes. Banks, brokers, financial analysts, and rating agencies act as financial or information intermediaries facilitating trading and information exchange. Offering and trading financial instruments are highly regulated activities and supervised by national supervisors, such as the BaFin in Germany, the AMF in France and the FCA in the UK, and the European authority ESMA.

The course provides an introduction to European Capital Markets Law with a focus on key financial instruments, the regulation of trading venues such as stock exchanges and the law on market abuse (insider trading and market manipulation) and initial public offerings including prospectus law. It is meant to equip students with the necessary information on capital markets, their foundations and regulation to enable them to develop a thorough understanding of this main pillar of our market-based economy. Whenever possible the course will pay special attention to current developments.


Capital Markets

Andreas E. Meier

This lecture provides students with an introduction of the functioning of capital markets. In particular the focus lies on:

  1. Functions of capital markets
  2. Raising capital for corporations
  3. Understanding Asset Classes
    - Equities
    - Fixed Income
    - Mutual and Hedge Funds
    - Commodities
    - Real Estate
    - Private Equity

During the course, each asset class will be examined with respect to
- Risk and Return
- Pricing and valuation
- Perspectives of Issuers and Investors
- Administrative and regulatory frameworks


Managerial Finance

Prof. Dr. Markus Rudolf, apl. Prof. Dr. Katrin Baedorf

Katrin and Markus are very happy to welcome you in the Course Managerial Finance as part of the Master of Law and Business program. The objective of this course is to make you familiar with some very relevant elements of financial theories that have important applications in your management life. We will focus on some basic concepts but also on more modern approaches. The focus will always be to understand the learnings we can derive from the different financial theories and how to apply the models. Thus, the course will have a very high level of practical orientation.

We will start in the course with a section on Value and Pricing. This part provides an introduction to the basic concepts of finance. It starts with basic tools for the valuation of asset classes and projects such as the concepts of Net Present Value (NPV) and Internal Rate of Return (IRR). All the material is illustrated using an actual case.

The second part of the course applies the basic concepts to other assets, we call the section Advanced Financial Assets. This part covers derivative instruments, such as options and futures. It also gives a primer to the technology of blockchains. And the last part of this section deals with carbon regulation, carbon prices and carbon derivatives. This is a market which becomes increasingly important when it comes to CO2 neutralization of our economic processes.

In the third part of this course we will talk about Trading as the final implementation step of any asset management strategy. Here you will learn how a systematic trading process should be set up and what you can learn from using different trading systems. Examples will use real time market data and applications of trading strategies.

In the fourth part of this course we will focus on Behavioral Finance. This is a modern discipline in finance taking psychological effects in the decision-making process into account. We will introduce some very relevant models of Behavioral Finance and focus on their application in the asset management process.