Course detail

Basic Elements of Financing

FP-ZFAcad. year: 2013/2014

Financial market structure, institutions and tools. Money market – banking, active and passive banking products, payment system. The capital market – basic rules of financial investments, investment tools (types of securities and ways of capital market analysis), capital market institutions. Public finance and insurance.

Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Mária Režňáková, CSc.

Department

Institute of Finances (ÚF)

Learning outcomes of the course unit

After completion of the course, student is able:
- to define financial market position, importance and function in the economic system;
- to utilize services provided by commercial banks ;
- to describe the importance of capital market, its tools (securities) and institutions from the view of financing and investment;
- to characterize insurance market, its participants, tools;
- to define public finance functions and tools.

Prerequisites

Not required.

Co-requisites

Not applied.

Planned learning activities and teaching methods

The course contains lectures that explain principles, decisions problems and methodology of the discipline, and exercises that promote the practical knowledge of the subject presented in the lectures.

Assesment methods and criteria linked to learning outcomes

CREDIT REQUIREMENTS: At least 50 % successful passing of test. Students have the possibility to use one regular and one resit test. Presentation of the essay. Voluntary homework.

WAY OF EXAMINATIONS: The exam has a written and an oral part and is oriented to verify theoretical and practical knowledge. The basis for the exam is a list of questions that students receive at the end of each thematic unit and standardized examples practiced in the consultation. The questions are formulated in the form of open and closed questions. The test is required 50% success rate.

RULES OF THE CLASSIFICATION: according to rules of study Examination of Brno University of Technology

Course curriculum

Economic system and the financial market. Banking system. Capital market. Investment instruments. Stocks and their analysis. Risk, return and liquidity of investment instruments. Theory of portfolio.
Collective investment institutions. Pension funds. Insurance. Public finance.

Work placements

Not applicable.

Aims

The objective of the course is to make students familiar with financial market area. From this view:
- to define financial market position, importance and function in the economic system;
- to characterize money market institutions (central bank, commercial banks) and services provided;
- to introduce the meaning of capital market and to present its tools (securities) and institutions;
- to characterize insurance market, its participants, tools;
- to define public finance functions and tools.

Specification of controlled education, way of implementation and compensation for absences

Attendance at lectures is not compulsory, but is recommended. Attendance at seminars is required and checked by the tutor. Lessons are composed on the basis of weekly schedules. Way of substituting missed lessons is fully in competence of a teacher.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Not applicable.

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme BAK-MIn Bachelor's

    branch BAK-MIn , 2. year of study, summer semester, compulsory

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

doc. Ing. Romana Čižinská, Ph.D.

Syllabus

LECTURES:
1. Introduction. Economic szstem and the financial market
2. Banking system.
3. Commercial bank, its role and functions.
4. Capital market. Prague Stock Exchange. Investment instruments.
5. - 6. Stocks and their analysis. Efficient markets theory.
7. Bonds and their analysis.
8. Financial derivatives.
9. Risk, return and liquidity of investment instruments. Theory of portfolio.
10. Collective investment institutions, securities traders.
11. Pension funds. Insurance.
12. Public finance.
13. Summary. Discussion. Time reserve.

Exercise

26 hours, compulsory

Teacher / Lecturer

doc. Ing. Michal Karas, Ph.D.

Syllabus

SEMINARS:
1. Content of the Subject. Requirements. Time Value of Money - Interest
2. Basics of Financial Mathematics - saving, efficient interest rates
3. Basics of Financial Mathematics - annuity
4. Loans. Building society accounts
5. Leasing. Factoring. Forfaiting
6. Methods of stock's intrinsic value determination
7. Bonds valuation - duration, convexity, risk, return, yields
8. Financial derivatives - selected issues
9. Risk, return and liquidity. Portfolio theory.
10. Test
11. Seminar work presentation.
12. Seminar work presentation.
13. Test reparation. Credits granting.