This class provides an introduction to financial markets. We cover major financial instruments -- bonds, bank loans, equity and derivatives -- and how their prices are determined. What are the key financial institutions that lend, provide liquidity and make markets. What role does the government play through regulation, monetary policy, bailouts and other interventions during financial crises. First we teach basic principles of modern finance. Then we focus on recent developments (digital currencies provided by central banks or the private sector, climate finance.) The course qualifies for the Economics major (BA and BS) and requires little prior exposure to finance. ECON majors may only count units from one of the following towards their major requirements as the courses are too similar in content: ECON 141, ECON 140, or ECON 135.
5 units · Letter or Credit/No Credit
This class provides an introduction to financial markets. We cover major financial instruments -- bonds, bank loans, equity and derivatives -- and how their prices are determined. What are the key financial institutions that lend, provide liquidity and make markets. What role does the government play through regulation, monetary policy, bailouts and other interventions during financial crises. First we teach basic principles of modern finance. Then we focus on recent developments (digital currencies provided by central banks or the private sector, climate finance.) The course qualifies for the Economics major (BA and BS) and requires little prior exposure to finance. ECON majors may only count units from one of the following towards their major requirements as the courses are too similar in content: ECON 141, ECON 140, or ECON 135.
Offered in Winter 2026 at Stanford University.