Course detail

Basic Elements of Financing

FP-ZFAcad. year: 2017/2018

Financial market structure, institutions and tools. Money market – banking, banking products. The capital market – basic rules of financial investments, investment tools (types of securities and ways of capital market analysis), capital market institutions. Stock exchance. Insurance. Public finance (public revenues and expenditures, state budget, public debt).

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 ;
- 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

Not required.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course contains lectures that explain principles, decisions problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

Assesment methods and criteria linked to learning outcomes

CREDIT REQUIREMENTS: At least 50 % successful passing of test. Students have the possibility to use one regular and one resit test. Presentation of the essay. Voluntary homework. Participation in seminars (one absence during the semester is tolerated).

WAY OF EXAMINATIONS: The written exam is oriented to verify theoretical and practical knowledge. The questions are formulated in the form of open and closed questions. The test is required 50% success rate.

RULES OF THE CLASSIFICATION: according to rules of study Examination of Brno University of Technology

Course curriculum

Economic system and the financial market. Banking system and products. Capital market. Investment instruments. Stocks bonds, financial derivates. Risk, return and liquidity of investment instruments. Theory of portfolio.
Collective investment institutions. 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

BROOKS, R. M. Financial management: Core concepts. 3rd ed. Boston: Pearson, 2016. 619 p. ISBN 978-0-133-86669-8 (EN)
SRPOVÁ, J., ŘEHOŘ, V. a kol. Základy podnikání. Teoretické poznatky, příklady a zkušenosti českých podnikatelů. Praha: Grada Publishing. 2010. (CS)

Recommended reading

FOTR, J. Podnikatelský záměr a investiční rozhodování. 2. přepr. a dopl. vyd. Praha: Grada Publishing, 2005. 356 s. (CS)

Classification of course in study plans

  • Programme BAK-MIn Bachelor's

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

  • Programme IT-BC-3 Bachelor's

    branch BIT , 2 year of study, winter semester, elective

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

doc. Ing. Eva Lajtkepová, Ph.D.

Syllabus

LECTURES:
1. Introduction.
2. Economic system and the financial market.
3. Banking system.
4. Banking products.
5. Capital market. Prague Stock Exchange.
6. Stocks, bonds, financial derivates.
7. Investment in the financial market. Theory of portfolio.
8. Subjects of collective investment.
9. Insurance.
10. Leasing, factoring, forfaiting.
11. Public finance I (public choice, public revenues and expenditures).
12. Public finance II (public budgets, public debt).
13. Summary. Discussion.

Exercise

13 hod., compulsory

Teacher / Lecturer

Mgr. Ing. Kristýna Fialová

Syllabus

SEMINARS:
1. Content of the Subject. Requirements. Basics of Financial Mathematics (interest).
2. Basics of Financial Mathematics (saving, annuity).
3. Loans. Building society accounts.
4. Methods of stock's intrinsic value determination. Bonds valuation - duration, convexity, risk, return, yields.
5. Seminar work presentation.
6. Test.