| Course Unit Code | 154-0511/05 |
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| Number of ECTS Credits Allocated | 5 ECTS credits |
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| Type of Course Unit * | Choice-compulsory |
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| Level of Course Unit * | First Cycle |
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| Year of Study * | |
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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 | 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. |
| Summary |
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| The course provides an introduction to financial markets and the basic principles of the functioning of the financial system. Students are introduced to the functions of the financial system, the main types of financial intermediaries, money and capital markets, and the basic principles of regulation and ethical conduct in financial markets. Attention is paid to selected types of securities and basic financial calculations, the principles of investment, the assessment of return and risk, and collective investment. The course also covers trading on organized markets in the Czech Republic, the functioning of primary and secondary markets, and current trends in financial markets. |
| Learning Outcomes of the Course Unit |
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The course provides an introduction to financial markets. Its aim is to familiarize students with the basic principles of the functioning of the financial system and financial markets and to develop their ability to understand key financial instruments, institutions, and investment decisions.
Upon successful completion of the course, students will be able to:
- understand the financial system and its main functions,
- characterize and compare the main types of financial intermediaries,
- understand the basic principles of regulation and ethical conduct in financial markets,
- characterize money markets and capital markets,
- understand selected types of securities and perform basic financial calculations related to them,
- acquire the fundamentals of financial investment, including the assessment of return and risk,
- characterize the principles of collective investment, distinguish the main types of funds, and understand the basics of investing in funds,
- characterize the principles of trading on organized markets in the Czech Republic, in particular on the Prague Stock Exchange and RM-SYSTÉM,
- distinguish between and assess the functioning of primary and secondary securities markets,
- identify and characterize current trends in financial markets, including the development of FinTech, digital assets, and cryptocurrencies. |
| Course Contents |
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1. Financial system and financial markets – basic functions of the financial system, structure and classification of financial markets, financial market participants and financial intermediaries.
2. Securities and financial instruments – general characteristics of securities, their basic features and classification according to different criteria, and the role of securities in the financial system.
3. Bonds – characteristics and types – nature of debt securities, basic characteristics and classification of bonds, and main types of bonds.
4. Bonds – price, yield and credit risk – basic principles of bond valuation, bond prices and yields, basic calculations, credit risk and bond ratings.
5. Money market and its instruments – characteristics of the money market, selected money market instruments, returns on short-term financial instruments and methods of their calculation, discounting.
6. Shares – characteristics, valuation and market indicators – nature and types of equity securities, shareholders’ rights, share prices and returns, basic valuation principles and selected market indicators.
7. Financial investment – investment process and objectives – nature and stages of the investment process, investment objectives, return, risk and liquidity, historical and expected return.
8. Risk, diversification and investment decision-making – systematic and unsystematic risk, diversification and basic portfolio principles, investor behaviour and selected aspects of investment psychology.
9. Primary securities markets and initial public offerings – role and organization of primary markets, issuance process, initial public offerings (IPOs), securities prospectus and disclosure requirements.
10. Collective investment – principles and participants – individual versus collective investment, advantages and risks of collective investment, key participants and basic principles of collective investment.
11. Investment funds and ETFs – main types of investment funds, mutual funds and ETFs, fund performance, costs and risks, and basic principles of investing in funds.
12. Securities exchanges and global financial markets – organized and over-the-counter markets, securities exchanges and trading mechanisms, major global financial markets and selected market indicators.
13. Regulation, ethics and current trends in financial markets – regulation and supervision of financial markets, investor protection and ethical principles, lessons from financial crises and current trends including FinTech, digital assets and cryptocurrencies. |
| Recommended or Required Reading |
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| Required Reading: |
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BRANDL, Michael W., 2021. Money, Banking, Financial Markets & Institutions. Online. 2nd ed. Boston, MA: Cengage. ISBN 978-1-337-90482-7.
CECCHETTI, Stephen G. a SCHOENHOLTZ, Kermit L., 2024. Money, Banking, and Financial Markets. 2024 release. New York: McGraw-Hill. ISBN 978-1-266-96695-8
MADURA, Jeff a PASKELIAN, Ohaness, 2025. Financial Markets & Institutions. 14th ed. Mason, OH: Cengage. ISBN 978-0-357-98829-9.
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BRANDL, Michael W., 2021. Money, Banking, Financial Markets & Institutions. Online. 2nd ed. Boston, MA: Cengage. ISBN 978-1-337-90482-7.
CECCHETTI, Stephen G. a SCHOENHOLTZ, Kermit L., 2024. Money, Banking, and Financial Markets. 2024 release. New York: McGraw-Hill. ISBN 978-1-266-96695-8
MADURA, Jeff a PASKELIAN, Ohaness, 2025. Financial Markets & Institutions. 14th ed. Mason, OH: Cengage. ISBN 978-0-357-98829-9.
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| Recommended Reading: |
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MISHKIN, Frederic S. a EAKINS, Stanley G., 2024. Financial Markets and Institutions. 10th ed. Harlow: Pearson. ISBN 978-1-292-45953-0.
SAUNDERS, Anthony; CORNETT, Marcia Millon a ERHEMJAMTS, Otgontsetseg, 2024. Financial Markets and Institutions. 9th ed. New York, NY: McGraw Hill Education. ISBN 978-1-265-06834-9.
REILLY, Frank K.; BROWN, Keith C. a LEEDS, Sanford J., 2025. Investment Analysis and Portfolio Management. 12th ed. Boston, MA: Cengage. ISBN 978-0-357-98817-6 |
MISHKIN, Frederic S. a EAKINS, Stanley G., 2024. Financial Markets and Institutions. 10th ed. Harlow: Pearson. ISBN 978-1-292-45953-0.
SAUNDERS, Anthony; CORNETT, Marcia Millon a ERHEMJAMTS, Otgontsetseg, 2024. Financial Markets and Institutions. 9th ed. New York, NY: McGraw Hill Education. ISBN 978-1-265-06834-9.
REILLY, Frank K.; BROWN, Keith C. a LEEDS, Sanford J., 2025. Investment Analysis and Portfolio Management. 12th ed. Boston, MA: Cengage. ISBN 978-0-357-98817-6
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| Planned learning activities and teaching methods |
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| Lectures, Seminars |
| Assesment methods and criteria |
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| Tasks are not Defined |