| Course Unit Code | 154-0333/03 |
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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 * | First Cycle |
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| Year of Study * | Third Year |
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| Semester when the Course Unit is delivered | Winter 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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| KOR21 | Ing. Kateřina Kořená, Ph.D. |
| NOV33 | Ing. Martina Novotná, Ph.D. |
| Summary |
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| 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. |
| Learning Outcomes of the Course Unit |
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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.
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| Course Contents |
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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. |
| Recommended or Required Reading |
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| Required Reading: |
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CECCHETTI, Stephen G. a Kermit L. SCHOENHOLTZ. Money, banking, and financial markets. Sixth edition. New York: McGraw-Hill, 2019. ISBN 978-1-260-22678-2.
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. Praha: Grada Publishing, 2016, dotisk 2022. ISBN 978-80-247-5871-8.
VESELÁ, Jitka. Investování na kapitálových trzích. 3. vyd. Praha: Wolters Kluwer Česká republika, 2019. 792 s. ISBN 978-80-7598-212-4. |
CECCHETTI, Stephen G. a Kermit L. SCHOENHOLTZ. Money, banking, and financial markets. Sixth edition. New York: McGraw-Hill, 2019. ISBN 978-1-260-22678-2.
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. Praha: Grada Publishing, 2016, dotisk 2022. ISBN 978-80-247-5871-8.
VESELÁ, Jitka. Investování na kapitálových trzích. 3. vyd. Praha: Wolters Kluwer Česká republika, 2019. 792 s. ISBN 978-80-7598-212-4. |
| Recommended Reading: |
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BRANDL, Michael W. Money, banking, financial markets & institutions. Second edition. Boston, MA: Cengage, 2021. ISBN 9781337904827.
MISHKIN, Frederic S. The economics of money, banking, and financial markets. Business school edition. New York: Pearson, 2019. ISBN 978-0-13-473420-0.
SYROVÝ, Petr. Investování pro začátečníky. 4. vyd. Praha: Grada Publishing, 2022. Investice. ISBN 978-80-271-3458-8. |
BRANDL, Michael W. Money, banking, financial markets & institutions. Second edition. Boston, MA: Cengage, 2021. ISBN 9781337904827.
MISHKIN, Frederic S. The economics of money, banking, and financial markets. Business school edition. New York: Pearson, 2019. ISBN 978-0-13-473420-0.
SYROVÝ, Petr. Investování pro začátečníky. 4. vyd. Praha: Grada Publishing, 2022. Investice. ISBN 978-80-271-3458-8.
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| 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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| Credit and Examination | Credit and Examination | 100 (100) | 51 |
| Credit | Credit | 35 (35) | 18 |
| Studentbroker | Other task type | 5 | 0 |
| Credit test | Written test | 30 | 18 |
| Examination | Examination | 65 | 33 |