PYMIP-Introduction to Psychology for Finance
Module Provider: Psychology
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites: ICM331 Securities and Investments and ICM332 Financial Markets and Institutions and ICM337 Econometric Analysis for Finance
Modules excluded:
Current from: 2023/4
Module Convenor: Prof Philip Beaman
Email: c.p.beaman@reading.ac.uk
Summary module description:
This module provides the basics to understand the relevance of psychological research to financial markets, including details on "what is psychology" and how the subject is studied.
Aims:
The aim of the module is to introduce students to the scope and nature of psychology as a science relevant to the understanding of financial markets. The emphasis will be on acquiring knowledge and understanding thereby developing students’ transferable skills of analysis, evaluation and critical thinking. The content of the module offers a range of core topics with a strong focus on the scientific method and research practice. Students will be introduced to a number of core areas within psychology relevant to the study of human behaviour within finance, such as cognitive, social and biological psychology. Students will study some of the classical studies within psychology, as well as being introduced to newer topics.
Assessable learning outcomes:
By the end of the module students will be able to show a knowledge and understanding of concepts and theories and studies in relation to the following areas. Students will be able to:
(a) Understand how psychology is studied as an empirical science and appreciate some of the applications of psychology to finance and some of the pitfalls in uncritically applying the results of psychological studies
(b) Show a knowledge of the central and peripheral nervous systems, with particular emphasis on the brain and the role of emotion regulatory systems and the experience of emotion in judgment, risk assessment and decision-making.
(c) Show a knowledge of core areas within cognitive psychology, including attention, memory, judgment and decision-making.
(d) Explain some of the factors in social influence, including concepts such as conformity, (majority influence), groupthink, explanations of why people conform and decision-making within groups..
(e) Understand the effects of stress on the immune system, including the body’s response to stressors, stress related illness and the immune system. Life changes and daily hassles, workplace stress, personality factors in stress.
Additional outcomes:
Students will gain experience from participating in group discussions and activities. They will also gain experience in presentation and dissemination skills.
Outline content:
This course of 5 x 3-hour seminars will use a mixture of lectures, guided activities, group discussions and student presentations.
The course will provide an overview of both classic and cutting-edge studies in Psychology and will discuss how this research is applicable to behaviour of individuals within financial markets and possible impacts on market behaviour. An example list of session titles are:
1. Brain bases of behaviour
2. Cognitive limitations and biases
3. Behaviour within and between groups
4. Value, emotions, choice and risk
5. Stress and behaviour.
Brief description of teaching and learning methods:
The classroom sessions will be made up of a mixture of lectures, interactive discussions, group activities and student presentations. These will be further supported by a mixture of follow-up activities and guided reading.
Summative Assessment Methods:
| Method |
Percentage |
| Written assignment including essay |
100 |
Summative assessment- Examinations:
Summative assessment- Coursework and in-class tests:
Extended essay report
Penalties for late submission:
The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy “Penalties for late submission for Postgraduate Flexible programmes”, which can be found here: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmissionpgflexible.pdf
The Support Centres will apply the following penalties for work submitted late:
- where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
- where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.
The University policy statement on penalties for late submission can be found at:
https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.
Assessment requirements for a pass:
A mark of 50% overall.
Reassessment arrangements:
If a student fails the assignment, an alternative, equivalent assignment can be submitted. The assignment and date of submission will be by arrangement with the Module Convenor and/or Programme Director.
Additional Costs (specified where applicable):
1) Required text books: None
2) Specialist equipment or materials: None
3) Specialist clothing, footwear or headgear: None
4) Printing and binding: None
5) Computers and devices with a particular specification: None
6) Travel, accommodation and subsistence: None
Last updated: 30 March 2023
THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.