154-0511/05 – Financial Markets (FMa)

Gurantor departmentDepartment of FinanceCredits5
Subject guarantorprof. Ing. Tomáš Tichý, Ph.D.Subject version guarantorIng. Martina Novotná, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Year3Semesterwinter
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
KOR21 Ing. Kateřina Kořená, Ph.D.
NOV33 Ing. Martina Novotná, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+2

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 stock exchanges, - evaluate primary and secondary markets in selected countries, - define new global market trends.

Teaching methods

Lectures
Seminars

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, characterise trading on stock exchanges.

Compulsory literature:

CECCHETTI Stephen G. and Kermit L. SCHOENHOLTZ. Money, Banking and Financial Markets. 3rd ed. New York. MacGraw-Hill, 2011. 673 p. ISBN 978-0-07-122068-2. MISHKIN, Frederic S. and Stanley G. EAKINS. Financial Markets and Institutions. 8th ed. Boston: Pearson Prentice Hall, 2014. 704 p. ISBN 978-0133423624. FABOZZI, Frank J.and Franco MODIGLIANI. 4th edit. Capital Markets.New Jersey. Pearson Prentice Hall, 2009. ISBN 978-0-13-715499-9.

Recommended literature:

BODIE, Z., A. KANE and A. J. MARCUS. Investments. 10th ed. Boston: McGraw-Hill, 2013. 1080 p. ISBN 978-0077861674. FABOZZI, Frank J. and Franco MODIGLIANI. Capital Markets. Institutions and Instruments. 4th ed. New Jersey: Prentice Hall, 2009. 680 p. ISBN 0-13-715499-2. MADURA, Jeff. Financial Markets and Institutions. 8th ed. USA: South-Western Cengage Learning, 2008. 742 p. ISBN 978-0-324-56821-9. PECK, Sarah. Investment Ethics. 1st ed. USA: Wiley 2011. 304 p. ISBN 978-0-470-43453-6. PINTO, Jerald, E., PIRIE, Wendy, L. Investments. Principles of Portfolio and Equity Analysis. 1st ed. Wiley, 2011. 656 p. ISBN-13: 978-0470915806. ROSE, Peter S. and HUDGINS, Sylvia C. Bank Management and Financial Services. 1st ed. USA: McGraw-Hill Education, 2009. 769 p. ISBN 978-0-073-3824-32.

Way of continuous check of knowledge in the course of semester

Credit - written test, seminar work Combined examination (written and oral part)

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. 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. 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. Trading on stock exchanges. OTC market. 10. Primary issues - organization of primary issues, importance of primary issues, prospectus of the issuer of securities, primary issues in the world. 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. 13. 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

Full-time form (validity from: 2019/2020 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Credit and Examination Credit and Examination 100 (100) 51
        Credit Credit 35 (35) 18
                Credit test Written test 25  11
                Seminar project Semestral project 10  0
        Examination Examination 65  33
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2020/2021 (B0412A050006) Finance FIT P English Ostrava 3 Compulsory study plan
2019/2020 (B0412A050006) Finance FIT P English Ostrava 3 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner