154-0333/03 – Financial Markets I. B (FTIB)
| Gurantor department | Department of Finance | Credits | 5 |
| Subject guarantor | Ing. Martina Novotná, Ph.D. | Subject version guarantor | Ing. Martina Novotná, Ph.D. |
| Study level | undergraduate or graduate | Requirement | Compulsory |
| Year | 3 | Semester | winter |
| | Study language | Czech |
| Year of introduction | 2019/2020 | Year of cancellation | |
| Intended for the faculties | EKF | Intended for study types | Bachelor |
Subject aims expressed by acquired skills and competences
The course provides introduction to basic knowledge of financial markets, students will learn in this course to understand financial markets principles functioning. At the end of the course students should be able to:
- grasp financial system and its basic functions,
- compare particular financial intermediaries,
- get acquinted with regulation principles in financial markets,
- understand role of ethics in financial markets,
- define money and capital markets,
- understand selected securities and be able to make principle calculations,
- learn investment principles including collective investment,
- recognize different types of funds,
- understand investing in funds,
- describe trading on Prague Stock Exchange and RM-System,
- evaluate primary and secondary market in the Czech Republic,
- define new global market trends.
Teaching methods
Lectures
Tutorials
Project work
Summary
The course provides an introduction to financial markets, its aim is to teach students basic principles and functions of financial markets. This course enables students to understand basic functions of financial system, characterise money and capital markets, get acquainted with basic principles of regulation on financial markets and the role of ethics in financial markets, understand selected types of securities and basic calculations related to these securities, learn the fundamentals of investing including collective investment, and characterise trading on the Prague Stock Exchange and RM-System.
Compulsory literature:
Recommended literature:
Way of continuous check of knowledge in the course of semester
Credit - credit test
Combined examination (written and oral part)
ISP (Individual Study Plan): Participation in seminars is not mandatory. The student must meet the requirements for passing the subject - credit and successful completion of the combined exam (written and oral part). Attendance at lectures is optional.
E-learning
Other requirements
There are no other requirements on student.
Prerequisities
Subject has no prerequisities.
Co-requisities
Subject has no co-requisities.
Subject syllabus:
1. Financial system, main functions of financial system. Financial markets, financial intermediaries.
2. Securities and their characteristics - general definition of securities and their classification according to various aspects. Properties of securities.
3. Capital market, capital market instruments. Primary market, secondary market - characteristics.
4. Money market, money market instruments. Short-term financial instruments yields and their calculation. Discount.
5. Shares and the principle of equity securities. Legal regulation of shares in the Czech Republic. Features, forms and transferability of shares. Basic calculations related to shares.
6. Bonds - the principle of bonds, criteria of their classification and types of bonds.
7. Basic calculations related to bonds. Bond rating and its importance. Czech bond market.
8. Financial investment - the principle and phases of the investment process, basic objectives of investing. Yield, risk and liquidity measurement. Historical and expected return. Sources of systematic and unsystematic risk.
9. Stock exchanges - history, definition of stock exchange, elements of stock exchange system. PSE - organizational structure, trading on PSE. RM-System, Central Securities Depository.
10. Primary issues - organization of primary issues, importance of primary issues, prospectus of the issuer of securities, primary issues in the Czech Republic. Information obligation of financial market participants.
11. Collective investment - individual versus collective investment, advantages and risks of collective investment. Basic collective investment entities.
12. Types of funds, investing in funds. Collective investment in the Czech Republic.
13. Legislative basis of the Czech financial market, supervision and regulation on financial markets, basic ethical principles on financial markets.
14. Current state of financial markets, lessons learned from crises. Expected trends in financial market development.
Conditions for subject completion
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction