154-0560/01 – Fundamentals of Financial Markets (FFM)

Gurantor departmentDepartment of FinanceCredits3
Subject guarantorIng. Kateřina Kořená, Ph.D.Subject version guarantorIng. Kateřina Kořená, Ph.D.
Study levelundergraduate or graduateRequirementChoice-compulsory type B
YearSemestersummer
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
BOR30 Ing. Martina Borovcová, Ph.D.
KOR21 Ing. Kateřina Kořená, Ph.D.
NED0043 Ing. David Neděla, Ph.D.
NOV33 Ing. Martina Novotná, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit 3+0

Subject aims expressed by acquired skills and competences

The course is focused on acquiring basic knowledge of financial markets,i.e. banking, capital markets and insurance. After finishing the course students: -can define basic functions of financial markets, -will be familiar with banking system functioning, -will be able to distinguish banking products, -will understand problems of securities and investment, -will grasp principles of insurance industry.

Teaching methods

Lectures

Summary

The course is focused on acquiring basic knowledge of financial markets. It provides an introduction to banking, capital markets and insurance. After finishing the course students can define basic functions of financial markets, will be familiar with banking system functioning, will be able to distinguish banking products, will understand problems of securities and investment, will grasp principles of insurance industry.

Compulsory literature:

CASU, Barbara, Claudia GIRARDONE and Philip MOLYNEUX. Introduction to banking. 3rd ed. Harlow: Financial Times Prentice Hall, 2021. E-book. ISBN 978-1292240350. CECCHETTI Stephen G. a Kermit L. SCHOENHOLTZ. Money, Banking, and Financial Markets. 6th ed. New York. MacGraw-Hill, 2020.736 p. ISBN 978-1260226782. THOYTS, Rob. Insurance theory and practice. London: Routledge, 2010. 344 p. ISBN 978-0-415-55904-1.

Recommended literature:

APOSTOLIK, Richard, Christopher DONOHUE and Peter WENT. Foundations of banking risk: an overview of banking, banking risks, and risk-based banking regulation. Jersey City: GARP; Hoboken, c2009. 239 p. ISBN 978-0-470-44219-7. FABOZZI, Frank J. and Franco MODIGLIANI. Capital Markets. Institutions and Instruments. 5th ed. Cambridge: MIT Press. 2015. 1080 p. ISBN 978-0262029483. MISHKIN, Frederic S. a Stanley G. EAKINS. Financial Markets and Institutions. 8th ed. Boston: Pearson Prentice Hall, 2014. 704 p. ISBN 978-0133423624.

Way of continuous check of knowledge in the course of semester

Credit exam - written test, for individual study, too.

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. Structure and functioning of financial markets, classification of markets, types of financial intermediaries. 2. Money markets, capital markets, primary markets, secondary markets - characteristics, relationships. 3. Equity securities - stocks, classification of stocks, stockholder´s rights. Stocks and bonds - main differences. 4. Debt securities - bonds, role of bonds, classification of bonds. Importance of rating. 5. Financial investment, importance of investment process, phases of investment process, main goals of investing. Portfolio diversification. 6. Collective investment. Main subjects of collective investment. Classification of funds. Advantages and disadvantages of collective investment. 7. Capital markets participants. Role of stock exchanges. Prague Stock Exchange, RM-System, Central Securities Depository Prague. 8. Czech capital market - contemporary situation. 9. New trends in financial markets, contemporary situation in financial markets, lessons from financial crises. 10. Characteristics of banking system, commercial banks and their role in the banking system and in the economy. 11. Central banks. The role and basic functions of central banks - two stage banking system. Central banks and monetary policy. Independence of central banks. 12. Bank liabilities of commercial banks – characteristics of deposit services (types of demand and savings deposits) and non-deposit liabilities. Classification of client banking accounts, their advantages and disadvantages. 13. Credit services of commercial banks - characteristics of credit products. Lending policy and procedures. 14. Off-balance sheet services of commercial banks - characteristics of non-deposit and non-loan products. The purpose of implementation of these services. 15. Payment systems - the role of payment systems in the economy, their characteristics and classification. Payment systems providers. 16. Cashless payment instruments – direct and electronic banking. Main reasons for electronic banking operations. Communication systems. 17. Insurance industry and policy - insurance activities, insurance companies. Regulation of insurance industry, forms of regulation. Insurance and law. 18. Life insurance - characteristics, basic concept, premium, life insurance contracts. Additional insurance. 19. Non-life insurance I. - characteristics, types of nonlife insurance. Insurance of persons, liability insurance. 20. Non-life insurance II. – property insurance, property insurance for physical persons, business risk insurance and industrial insurance, agricultural risk insurance. 21. Pension system in the Czech Republic - 3rd pension pillar - participation funds, transformed funds.

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 pointsMax. počet pokusů
Credit Credit 85 (85) 85 2
        Písemka Written test 85  85 2
Mandatory attendence participation: Credit test, 50% attendance

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Conditions for subject completion and attendance at the exercises within ISP: Credit test, attendance is not obligatory

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
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2023/2024 (B0311A050005) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2022/2023 (B0311A050005) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2022/2023 (B0311A050005) Applied Economics (S02) International Economic Relations P English Ostrava Choice-compulsory type B study plan
2021/2022 (B0311A050005) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2021/2022 (B0311A050005) Applied Economics (S02) International Economic Relations P English Ostrava Choice-compulsory type B study plan
2020/2021 (B0311A050005) Applied Economics (S02) International Economic Relations P English Ostrava Choice-compulsory type B study plan
2020/2021 (B0311A050005) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan
2019/2020 (B0311A050005) Applied Economics (S02) International Economic Relations P English Ostrava Choice-compulsory type B study plan
2019/2020 (B0311A050005) Applied Economics (S01) Economic Development P English Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

Assessment of instruction

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