Course detail

Basic Elements of Financing

FP-ZFAcad. year: 2012/2013

Financial market structure, institutions and tools. Money market – banking, active and passive banking products, payment system. The capital market – basic rules of financial investments, investment tools (types of securities and ways of capital market analysis), capital market institutions. Public finance and insurance.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Mária Režňáková, CSc.

Department

Institute of Finances (ÚF)

Learning outcomes of the course unit

After completion of the course, student is able:
- to define financial market position, importance and function in the economic system;
- to utilize services provided by commercial banks and to understand basic principles of commercial banks’ management;
- to describe the importance of capital market, its tools (securities) and institutions from the view of financing and investment;
- to characterize insurance market, its participants, tools;
- to define public finance functions and tools.

Prerequisites

No required.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Teaching methods depend on the type of course unit as specified in the article 7 of BUT Rules for Studies and Examinations.

Assesment methods and criteria linked to learning outcomes

CREDIT REQUIREMENTS: Successful passing of the written test (each grade at least 50 %). Seminar work presentation. Voluntary homeworks.
WAY OF EXAMINATIONS: The exam has a written and an oral part and is oriented to verify theoretical and practical knowledge. Final grade is awarded with respect to semester results of a student.
RULES OF THE CLASSIFICATION: according to rules of study Examination of Brno University of Technology

Course curriculum

Introduction. Economic szstem and the financial market
Banking system.
Commercial bank, its role and functions.
Capital market. Prague Stock Exchange. Investment instruments.
Stocks and their analysis. Efficient markets theory.
Bills of exchange and their flow.
Bonds and their analysis.
Financial derivatives.
Risk, return and liquidity of investment instruments. Theory of portfolio.
Collective investment institutions, securities traders.
Pension funds. Insurance.
Public finance.

Work placements

Not applicable.

Aims

The objective of the course is to make students familiar with financial market area. From this view:
- to define financial market position, importance and function in the economic system;
- to characterize money market institutions (central bank, commercial banks) and services provided;
- to introduce the meaning of capital market and to present its tools (securities) and institutions;
- to characterize insurance market, its participants, tools;
- to define public finance functions and tools.

Specification of controlled education, way of implementation and compensation for absences

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is required and checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Not applicable.

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme BAK-MIn Bachelor's

    branch BAK-MIn , 2 year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

doc. Ing. Romana Čižinská, Ph.D.

Syllabus

LECTURES:
1. Introduction. Economic szstem and the financial market
2. Banking system.
3. Commercial bank, its role and functions.
4. Capital market. Prague Stock Exchange. Investment instruments.
5.and 6. Stocks and their analysis. Efficient markets theory.
Bills of exchange and their flow.
7. Bonds and their analysis.
8. Financial derivatives.
9. Risk, return and liquidity of investment instruments. Theory of portfolio.
10. Collective investment institutions, securities traders.
11. Pension funds. Insurance.
12. Public finance.
13. Summary. Discussion. Time reserve.

Exercise

26 hod., compulsory

Teacher / Lecturer

Ing. Kristína Sághy Estélyi, Ph.D.

Syllabus

SEMINARS:
1. Content of the Subject. Requirements. Time Value of Money - Interest
2. Basics of Financial Mathematics - saving, efficient interest rates
3. Basics of Financial Mathematics - annuity
4. Loans. Building society accounts
5. Leasing. Factoring. Forfaiting
6. Methods of stock's intrinsic value determination
7. Bonds valuation - duration, convexity, risk, return, yields
8. Financial derivatives - selected issues
9. Risk, return and liquidity. Portfolio theory.
10. Test
11. Seminar work presentation.
12. Seminar work presentation.
13. Test reparation. Credits granting.