| Course Unit Code | 154-0537/03 |
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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 | English |
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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, understand financial derivative instruments, 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 state of financial markets in the world.
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 ethic 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 I – characteristics and aims of fundamental analysis, global and sector analysis
4. Fundamental analysis II – company analysis, calculation of intrinsic value, investment recommendation
5. Technical analysis I – history, principles of technical analysis, analysis of trends (trend analysis, grpahs)
6. Technical analysis II – graphical methods and indicators of technical analysis
7. Psychological analysis, comparison of stock analyses - theory of psychological analysis, fundamentals of behavioral finance, Keynes's investment psychology, Kostolany's stock psychology, bubble theory
8. Bond analysis, rating – time structure of interest rates, yield curves, importance of bond rating and current trends
9. Derivative markets – the beginnings of derivative transactions, the definition of derivatives
10. Futures, forwards, swaps – characteristics of derivative instruments and their use, trading with derivatives
11. Option contracts, option-like securities – the nature of option contracts, basic options, option-like securities (convertible bonds, warrants)
12. Option trading, basic option positions, synthetic options – systematization and listing of options, long and short option positions, covered and uncovered options
13. Option strategies – characteristics and use of selected option strategies (straddle, strangle, spread, butterfly)
14. Financial innovations – the essence of financial engineering, depository receipts, stripped securities, structured products (structured bonds, investment certificates)
15. Asset management – professional portfolio management, portfolio management process, passive and active strategy, portfolio performance
16. Ethics in financial markets – the essence, importance and principles of ethical behaviour in financial markets
17. Global financial markets I – world financial centres, their characteristics and importance, regulation of financial markets
18. Global financial markets II – financial market indicators, examples of selected stock indices
19. International investment – international capital movements, direct and portfolio investment, advantages and disadvantages
20. Emerging markets – definition of emerging markets, classification of frontier markets, motives of investing in these markets
21. Current situation in global 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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BODIE, Z., KANE, A. and A. J. MARCUS. Investments. 12th ed. New York: McGraw Hill, 2021. ISBN 978-1260571158.
LAOPODIS, Nikiforos. Understanding investments: theories and strategies. 2nd ed. London: Routledge, Taylor & Francis Group, 2021. ISBN 978-1000074741.
REILLY, F. K., K. C. BROWN a S. J. LEEDS. Investment analysis and portfolio management. 11th ed. Boston: Cengage, 2019. ISBN 978-1305262997.
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BODIE, Z., KANE, A. and A. J. MARCUS. Investments. 12th ed. New York: McGraw Hill, 2021. ISBN 978-1260571158.
LAOPODIS, Nikiforos. Understanding investments: theories and strategies. 2nd ed. London: Routledge, Taylor & Francis Group, 2021. ISBN 978-1000074741.
REILLY, F. K., K. C. BROWN a S. J. LEEDS. Investment analysis and portfolio management. 11th ed. Boston: Cengage, 2019. ISBN 978-1305262997.
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| Recommended Reading: |
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FABOZZI, F. J. and F. A. FABOZZI. Bond markets, analysis, and strategies. 10th ed. The MIT Press, 2021. Always learning. ISBN 978-0253337535.
HULL, John. Options, futures, and other derivatives. 11th ed.. Harlow, England: Pearson, 2022. ISBN 978-1292410654.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
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FABOZZI, F. J. and F. A. FABOZZI. Bond markets, analysis, and strategies. 10th ed. The MIT Press, 2021. Always learning. ISBN 978-0253337535.
HULL, John. Options, futures, and other derivatives. 11th ed.. Harlow, England: Pearson, 2022. ISBN 978-1292410654.
MADURA, Jeff. Financial markets and institutions. 13th ed. Mason: South-Western Cengage Learning, 2021. ISBN 978-0357130797.
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| Planned learning activities and teaching methods |
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| Lectures, Seminars, 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 |