| Course Unit Code | 154-0337/03 |
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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 * | 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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| 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. Fundamentals of investment theory - value and growth theory of investment, beginnings of modern investment theory
2. Efficient market theory - the nature and forms of market efficiency, anomalies in financial markets
3. Fundamental analysis - global and sector analysis, company analysis, calculation of intrinsic value
4. Technical analysis - history, principles of technical analysis, graphical methods and indicators
5. Psychological analysis, comparison of stock analyses - theory of psychological analysis, fundamentals of behavioral finance, Keynes's investment psychology, Kostolany's stock psychology, bubble theory
6. Bond analysis, rating - time structure of interest rates, yield curves, importance of bond rating and current trends
7. Derivative markets - the beginnings of derivative transactions, the definition of derivatives, forwards, futures, swaps
8. Option contracts, option-like securities - the nature of option contracts, basic options, option-like securities (convertible bonds, warrants)
9. Option trading, basic option positions, synthetic options - systematization and listing of options, long and short option positions, covered and uncovered options
10. Option strategies - characteristics and use of selected option strategies (straddle, strangle, spread, butterfly)
11. Financial innovations - the essence of financial engineering, depository receipts, stripped securities, structured products (structured bonds, investment certificates)
12. Securitization - nature and process of securitization, characteristics of securitized products, current trends
13. Financial market indicators – the role of capital market indicators (averages, indices), characteristics and examples of selected stock indices
14. Asset management - professional portfolio management, portfolio management process, passive and active strategy, portfolio performance
15. Ethics in financial markets - the essence, importance and principles of ethical behavior in financial markets
16. Global financial markets - world financial centres, their characteristics and importance, regulation of financial markets
17. International investment - international capital movements, direct and portfolio investment, advantages and disadvantages
18. Emerging markets - definition of emerging markets, classification of frontier markets, motives of investing in these markets
19. Czech financial market - history and development of the Czech capital market
20. Regulation of the Czech capital market - legal basis of the capital market in the Czech Republic, objectives of regulation, current situation
21. Current situation in financial markets - current trends in financial markets, globalization
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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.
|
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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| Credit and Examination | Credit and Examination | 100 (100) | 51 |
| Credit | Credit | 35 (35) | 18 |
| Písemka | Written test | 20 | 10 |
| Obchodování | Other task type | 5 | 0 |
| Semestrální práce | Semestral project | 10 | 0 |
| Examination | Examination | 65 | 33 |