| Course Unit Code | 154-0337/02 |
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| Number of ECTS Credits Allocated | 5 ECTS credits |
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| Type of Course Unit * | Compulsory |
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| Level of Course Unit * | Second Cycle |
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| Year of Study * | First Year |
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| Semester when the Course Unit is delivered | Summer Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | Czech |
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| Prerequisites and Co-Requisites | Course succeeds to compulsory courses of previous semester |
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| Name of Lecturer(s) | Personal ID | Name |
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| KUL20 | prof. Ing. Lumír Kulhánek, CSc. |
| KOR21 | Ing. Kateřina Kořená, Ph.D. |
| NOV33 | Ing. Martina Novotná, Ph.D. |
| TIC02 | prof. Ing. Tomáš Tichý, Ph.D. |
| Summary |
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The aim of this course is to extend students' knowledge of financial markets. Completion of this course will enable students to understand stock analyses and practically apply a fundamental analysis, to understand financial derivative instruments, to understand portfolio management and the role of portfolio manager, grasp the basic principles and need for ethical behaviour in financial markets, define regulation of financial markets, and assess the current financial markets in the world and the Czech Republic including the possibility of investing in these markets.
Exercises are focused on deepening the knowledge of lectures using illustrative examples and application of acquired knowledge, especially in the field of fundamental analysis and option strategies.
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| Learning Outcomes of the Course Unit |
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The aim of this course is to extend basic knowledge of financial markets. At the end of the course students should be able to:
- understand stock analyses and to compare these analyses,
- learn to elaborate fundamental analysis,
- grasp derivative instruments,
- understand asset managemet and a role of a portfoliomanager,
- understand basic principles and necessity of ethical behaviour in financial markets,
- define financial markets regulation,
- evaluate situation in global financial markets and in the Czech financial market including investment possibilities in these markets. |
| Course Contents |
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1. Equity Analyses, Asset Management
Investment theory development - growth and value theory of investing
Effective market theory – history, forms effectiveness, market anomalies
Fundamental analysis - global, sector and company analysis, financial analysis, calculation of intrinsic value, SWOT analysis
Technical analysis – main principles, history, charts and indicators, important financial market indicators
Psychological analysis – theories of psychological analysis, behavioral finance
Asset management, main principles of asset management, portfolio performance evaluation, role of portfolio manager
Global Investment Performance Standards
2. Derivative Markets
Derivative markets and instruments – classification, use of derivatives, derivative markets
Futures, forwards, swaps, options
Trading with futures – mechanics of trading, clearinghouse, liquidation of futures positions
Option strategies, synthetic options – types and use of option strategies
Structured instruments, securitization
3. Ethics and Financial Markets, Code of Ethics and Standards of Professional Conduct(CFA)
Ethics in financial markets, unethical examples of companies ‘behavior
Professionalism – knowledge of the law, independence and objectivity, misrepresentation and misconduct
Integrity of capital markets - material nonpublic information, examples of market manipulation
Duties to clients - loyalty, prudence and care, fair dealing, suitability, performance presentation, preservation of confidentiality
Ethical reporting of investment, risk profile of client, informing clients of the investment process
Duties to employers – loyalty, additional compensation arrangements, responsibilities and supervisors
Investment analysis, recommendations and actions - diligence and reasonable basis, communication with clients and prospective clients, record retention
Conflicts of interest - disclosure of conflicts, priority of transactions, referral fees
4. Financial Markets
Global financial markets - motives for using global financial markets, main centers, USA, Europe, Asia
Investing in global financial markets - stock exchanges versus OTC – markets, advantages and disadvantages of international investing
Role of the private equity and venture capital – types of risk capital, objectives of risk capital
Emerging markets, risk in emerging markets
Czech financial market – history, development, subjects, contemporary situation
Regulation of the Czech financial market, legislative basis of this market
Supervision and regulation in global financial markets – necessity of regulation, main regulation principles
Contemporary situation in global financial markets, the lesson from financial crises, new trends of financial markets
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| Recommended or Required Reading |
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| Required Reading: |
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GREENWALD, B. C. a kol. Hodnotové investování: od Grahama po Buffetta a ještě dál. Tetčice: Impossible, 2022. ISBN 978-80-87673-36-2.
REILLY, F. K., K. C. BROWN a S. J. LEEDS. Investment analysis and portfolio management. 11th ed. Boston: Cengage, 2019. ISBN 978-1-305-26299-7.
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. Praha: Grada Publishing, 2016, dotisk 2022. ISBN 978-80-247-5871-8. |
GREENWALD, B. C. a kol. Hodnotové investování: od Grahama po Buffetta a ještě dál. Tetčice: Impossible, 2022. ISBN 978-80-87673-36-2.
REILLY, F. K., K. C. BROWN a S. J. LEEDS. Investment analysis and portfolio management. 11th ed. Boston: Cengage, 2019. ISBN 978-1-305-26299-7.
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. Praha: Grada Publishing, 2016, dotisk 2022. ISBN 978-80-247-5871-8. |
| Recommended Reading: |
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HULL, John. Options, futures, and other derivatives. 11th ed.. Harlow, England: Pearson, 2022. ISBN 978-1-292-41065-4.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
REILLY, F. K., K. C. BROWN a S. J. LEEDS. Investment analysis and portfolio management. 11th ed. Boston: Cengage, 2019. ISBN 978-1-305-26299-7.
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HULL, John. Options, futures, and other derivatives. 11th ed.. Harlow, England: Pearson, 2022. ISBN 978-1-292-41065-4.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
VESELÁ, Jitka. Investování na kapitálových trzích. 3. vyd. Praha: Wolters Kluwer Česká republika, 2019. ISBN 978-80-7598-212-4. |
| Planned learning activities and teaching methods |
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| Lectures, Tutorials, Project work |
| Assesment methods and criteria |
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| Task Title | Task Type | Maximum Number of Points
(Act. for Subtasks) | Minimum Number of Points for Task Passing |
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| Exercises evaluation and Examination | Credit and Examination | 100 (100) | 51 |
| Exercises evaluation | Credit | 35 | 18 |
| Examination | Examination | 65 | 33 |