Course detail

Comodity and Stock Trading

FP-OocpPAcad. year: 2021/2022

The course focuses on the issues of investment in securities and commodities and their trading on publicly organized markets. The interpretation goes from the essence of the function of the stock markets to the systemic definition of their internal structure to the mechanism of their operation and the possible economic impacts in case of failure. Subsequently, it focuses on individual types of financial investment instruments, especially on exchangeable securities and commodities, foreign currencies, futures derivatives, securities of investment and mutual funds and, last but not least, publicly tradable structured products. And part of the interpretation is fundamental, technical and psychological analysis, as well as practical training of securities trading both in the Czech Republic and abroad. By completing the course, the student acquires a comprehensive view of the current ways of using financial investment instruments for external financing of the company (or recognizes the meaning of financial transactions carried out by the so-called transnational financial conglomerates), and learns how to manage their own assets. And, given the knowledge gained on the investment and knowledge of both securities and commodities, it will be able to independently conduct business transactions both in the Czech Republic and on foreign exchanges.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Oldřich Rejnuš, CSc.

Department

Institute of Economics (ÚE)

Learning outcomes of the course unit

The student will be able to trade independently on world, especially stock and commodity exchanges. 

Prerequisites

Basic knowledge of financial markets theory is assumed, as well as mathematics, statistics, macroeconomics, microeconomics and the basics of law. 

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course is taught in the form of lectures, which have the character of an explanation of the basic principles and theory of the discipline. And they are freely followed by exercises in which specific examples are solved, as well as practical training in obtaining the necessary information for stock exchange trading on the Czech, European and American capital and commodity markets, as well as ways of placing stock market orders. 

Assesment methods and criteria linked to learning outcomes

The course ends with the award of credit on the basis of successful writing of a written test consisting of two parts, both of which must be successfully completed. The first part of the test is the calculation of three examples, from which for each correctly calculated example the student can get a maximum of 5 points. The student can get a maximum of 15 points from this part of the test, while the minimum number of points for which this part of the test can be recognized is 10. The second part of the test consists of ten questions, having different numbers of correct answers that the student circles. He gets a positive point for the correct answer, a point is deducted for the wrong answer. Unrounded answers are not taken into account. If the student reaches 70% of the maximum number of correct answers, he / she will meet the required conditions. Based on the granted credit, he then has the right to register for the oral exam. 

Course curriculum

The subject is focused on the issues of investment in securities and commodities and their trading. The interpretation goes from the essence of the function of the stock markets to the systemic definition of their internal structure to the mechanism of their operation and the possible economic impacts in case of failure. Subsequently, it focuses on individual types of financial investment instruments, especially on exchangeable securities and commodities, foreign currencies, futures derivatives, securities of investment and mutual funds and, last but not least, publicly tradable structured products. Part of the explanation is also fundamental, technical and psychological analysis, as well as practical training of securities trading both in the Czech Republic and abroad.
1. Characteristics of capital markets. Exchange systems, specific functions of their individual sub-segments.
2. The basic factors of the investment strategy.
3. Types of shares, their properties and trading patterns.
4. Fundamental stock analysis.
5. Technical Analysis and Psychological Analysis.
6. Types of bonds, their characteristics, valuation methods and trading.
7. Specific characteristics of commodities, their valuation and trading; specifics of trading of precious metals and foreign currencies.
8. Term derivative instruments; trading futures, options and futures options.
9. Specifics of collective investment funds and qualified investors (hedge funds) and "Exchange traded funds".
10. Types of structured products, their nature, risk, pricing, and trading patterns.

Work placements

No.

Aims

The student will understand the function of financial markets and the importance of securities, perform analyzes necessary for investment decisions in financial markets, diversify risk, design investment strategies and will be equipped with the necessary knowledge and understanding of trading securities, foreign currencies and commodities. 

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

Successful writing of a credit test. 

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

REJNUŠ, Oldřich. Finanční trhy. 4., aktualiz. a rozš. vyd. Praha: Grada, 2014. 760 s. Profesional. ISBN 978-80-247-3671-6.

Recommended reading

GLADIŠ, D. Akciové investice. 1. vyd. Praha: Grada, 2015. Investice. ISBN 978-80-247-5375-1.
Kislingerová, Eva a Hnilica, Jiří. Finanční analýza: krok za krokem. 2. vyd. Praha: C.H. Beck, 2008. xiii, 135 s. C.H. Beck pro praxi. ISBN 978-80-7179-713-5. (CS)
MELUZÍN, T. Finanční trhy - cvičení: (základy finanční matematiky). 3., přeprac. vyd. Brno: Akademické nakladatelství CERM, 2012. ISBN 978-80-214-4615-
MELUZÍN, T., ZINECKER, M. a ŁAPIŃSKA, J. Initial public offering: theory and practice of Czech and Polish companies. Toruń: Polish Economic Society, Branch in Toruń, 2012. ISBN 978-83-62049-15-
MISHKIN, Frederic S., MATTHEWS, Kent a GIULIODORI, Massimo. The economics of money, banking and financial markets. Harlow: Pearson Education, 2013. xxix, 625 s. ISBN 978-0-273-73180-1.
REJNUŠ,O., Finanční trhy - Učebnice s programem na generování cvičných testů. Praha, GRADA, 1. vydání, 2016, 380 stran.
Wystup, Uwe. FX options and structured products. Chichester: John Wiley & Sons, 2006. xv, 323 s. Wiley finance series. ISBN 0-470-01145-9. (EN)

Classification of course in study plans

  • Programme MGR-MEO Master's 2 year of study, summer semester, compulsory

Type of course unit

 

Lecture

20 hod., optionally

Teacher / Lecturer

prof. Ing. Oldřich Rejnuš, CSc.

Syllabus

Definition of organized markets, their characteristics and economic importance.
Exchange systems, specific functions of their individual sub-segments.
The basic factors of the investment strategy.
Types of shares, their properties and trading patterns.
Fundamental stock analysis.
Technical analysis.
Psychological analysis.
Stock exchange trading.
Types of bonds, their characteristics, valuation methods and trading.
Specific features of commodities, their analysis and trading patterns; specifics of trading of precious metals and foreign currencies.
Term derivative instruments; trading futures, options and futures options.
Specifics of classic collective investment funds, "Exchange traded funds" and funds of qualified investors (or hedge funds).
Types of structured products and specifics of their trading.

Exercise

10 hod., optionally

Teacher / Lecturer

prof. Ing. Oldřich Rejnuš, CSc.

Syllabus

The exercises provide solutions to specific examples, as well as practical training in obtaining the necessary information for stock exchange trading on the Czech, European and American capital and commodity markets, as well as ways of entering stock exchange orders. At the last exercise, students take a credit test.