Course detail

Financial Markets

FP-ftPAcad. year: 2022/2023

Contents of lectures:
Types of financial transactions
- Direct and indirect funding, the types of financial markets
- Factors integration of financial market segments
- Current trends in the financial system
Financial institutions
- The banking system, banking institutions, banking transactions, bank products
- Other non-banking financial market institutions
The theory of interest rates and their effect in the financial system
Introduction to the theory of financial investments
- The definition of "investment," their distribution and basic characteristics
- Supply and demand in investment financial instruments
- Basic factors of investment strategies for investor
- The interdependence of investment factors
The financial investment tools
Classic Securities
- Business (corporate) shares
- Bonds
- Developments in the financial markets in the different stages of the economic cycle
Stocks and bonds of collective investment
Financial derivatives
- Definition of spot and futures
- Fixed-term contracts, forwards and futures
- Swap contracts
- Option contracts
- Synthetic (composite) financial derivatives
Structured products

The content of the seminars / Fundamentals of Financial Mathematics /
1. Simple interest and discounting
2. Compound Interest
3.Ssaving
4. Pensions
5. Loan Repayment
6. Bonds and Stocks
7. Credit test

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Learning outcomes of the course unit

Students will acquire theoretical and practical knowledge and skills from all spheres connected with functioning of a financial market. They will understand the significance of the financial market for the economy of every state and will have a grasp of the function and mission of each institution and subject operating on the financial market. They will learn to differentiate financial tools and to use them in practice. Students will also learn how to plan and carry out basic financial operations using existing financial tools in the corporate practice as well as for personal finances management.

Prerequisites

The course is a follow-up to the knowledge of theory of market economy, monetary theory, and ways of pursuing of expansive and restrictive monetary and fiscal policy in an open economy, basic activities of banking system institutions.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

The course is taught through lectures explaining the basic principles and theory of the discipline. Exercises are focused on practical topics of financial mathematics.

Assesment methods and criteria linked to learning outcomes

Credit is awarded on the basis of successful completion of prescribed written tests, the content of which is the mathematics discussed in the exercises. The tests consist of five examples, of which for each correctly calculated example the student can get a maximum of 5 points. The student can get a maximum of 25 points from the test, while the minimum number of points for which credit can be awarded is 35 points. The first two tests are part of the exercise, the credit test then allows you to complete the required number of points. Credit is a condition of admission of a student to the oral exam. In the final evaluation of the course, the results of the credit test are taken into account by 30%, the results of the oral exam by 70%.

Completion of the course for students with individual study:
The conditions are the same, only credit is awarded only on the basis of a credit test, which contains 10 examples, of which for each correctly calculated example the student can get a maximum of 5 points.

Completion of the course in distance form:
The conditions for granting the credit are the same as for students with individual study. The exam will take the form of a test that will contain 20 multiple-choice questions, some of which may be correct. For each correct answer the student will receive a point, for each incorrect answer the point will be deducted. Unchecked answers will not be evaluated. The condition for successful passing of the exam is the achievement of at least 70% of possible points (evaluation by classification level E). Upon reaching 75% of the possible points, it will be graded D; when 80% of the possible points are reached by grade C; when 85% of the possible points are reached by grade B and when 90% of the possible points are reached by grade A.



Course curriculum

Předmět se zabývá jak teoretickými, tak především praktickými aspekty fungování finančního trhu. Jedná se jak o jednotlivé druhy zde působících finančních institucí, existujících finančních nástrojů, jakož i o nejvýznamnější druhy finančních obchodů, které jsou na finančních trzích realizovány. Současně obsahuje základy finanční matematiky.
1. Finanční trhy, jejich vymezení a funkce v ekonomice.
2. Finanční instituce, jejich produkty a služby.
3. Úrokové sazby a jejich význam v ekonomice.
4. Klíčové faktory finančních investic.
5. Základní druhy finančních investičních instrumentů.
6. Klasické cenné papíry (1. část).
7. Klasické cenné papíry (2. část).
8. Termínové derivátové instrumenty (1. část).
9. Termínové derivátové instrumenty (2. část).
10. Investiční a podílové fondy.
11. Strukturované produkty.
12. Regulace a dohled ve finančním systému.
13. Soudobé vývojové trendy světového finančního systému.

Work placements

Not applicable.

Aims

The main objective of the course is to teach students how to understand ding financial system as the integral part of an economic system as well as its role, substance and importance of its functioning. Students will learn how to actively participate in standard types of financial operations with individual types of investment financial tools, from the corporate financial transactions point of view as well as from the personal finances management point of view. Also dealt with are the fundamentals of financial mathematics necessary for financial practice.

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

The control of participation is fully in teacher’s competence. Active participation in lessons, control of knowledge in seminars.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Meluzín, T. Finanční trhy-cvičení. Brno: CERM, 2005. 1. vyd. ISBN 80-214-3048-6.
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. První vydání. Praha: Grada Publishing, a.s., 2016. 380 stran. ISBN 978-80-247-5871-8.

Recommended reading

Cipra, T.: Praktický průvodce finanční a pojistnou matematikou. Praha: HZ, 1995
Polidar,V.: Management bank a bankovních obchodů. Praha, Ekopress, 1999
Rejnuš, Oldřich. Finanční trhy. 4., aktualiz. a rozš. vyd. Praha: Grada, 2014. 760 s. Profesional. ISBN 978-80-247-3671-6.
ŠOBA,O., ŠIRŮČEK, M.: Finanční matematika v praxi. 2., aktualizované a rozšířené vydání, Grada, Praha, 2017. ISBN 978-80-271-0250-1. (CS)

Classification of course in study plans

  • Programme BAK-EP Bachelor's 2 year of study, winter semester, compulsory
  • Programme BAK-UAD Bachelor's 2 year of study, winter semester, compulsory-optional
  • Programme BIT Bachelor's 2 year of study, winter semester, elective
  • Programme BIT Bachelor's 2 year of study, winter semester, elective

  • 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

Syllabus

Contents of lectures:
Types of financial transactions
- Direct and indirect funding, the types of financial markets
- Factors integration of financial market segments
- Current trends in the financial system
Financial institutions
- The banking system, banking institutions, banking transactions, bank products
- Other non-banking financial market institutions
The theory of interest rates and their effect in the financial system
Introduction to the theory of financial investments
- The definition of "investment," their distribution and basic characteristics
- Supply and demand in investment financial instruments
- Basic factors of investment strategies for investor
- The interdependence of investment factors
The financial investment tools
Classic Securities
- Business (corporate) shares
- Bonds
- Developments in the financial markets in the different stages of the economic cycle
Stocks and bonds of collective investment
Financial derivatives
- Definition of spot and futures
- Fixed-term contracts, forwards and futures
- Swap contracts
- Option contracts
- Synthetic (composite) financial derivatives
Structured products

Exercise

26 hod., optionally

Teacher / Lecturer

Syllabus

The content of the seminars / Fundamentals of Financial Mathematics /
1. Simple interest and discounting
2. Compound Interest
3.Ssaving
4. Pensions
5. Loan Repayment
6. Bonds and Stocks
7. Credit test