Financial Markets for Economic IT specialist
FP-IfteiPAcad. year: 2020/2021
The course enables acquirement of theoretical knowledge and practical skills with respect to all spheres of activities on a financial market. The course deals with the individual types of existing financial institutions and financial instruments as well as with the most important types of financial transactions carried out on financial markets. The course provides students also with the fundamentals of financial mathematics.
Learning outcomes of the course unit
Students will acquire theoretical and practical knowledge and skills from all spheres connected with functioning of a financial market. They will understand the significance of the financial market for the economy of every state and will have a grasp of the function and mission of each institution and subject operating on the financial market. They will learn to differentiate financial tools and to use them in practice. Students will also learn how to plan and carry out basic financial operations using existing financial tools in the corporate practice as well as for personal finances management.
The course is a follow-up to the knowledge of theory of market economy, monetary theory, and ways of pursuing of expansive and restrictive monetary and fiscal policy in an open economy, basic activities of banking system institutions.
Recommended optional programme components
Recommended or required reading
REJNUŠ, Oldřich. Finanční trhy: učebnice s programem na generování cvičných testů. První vydání. Praha: Grada Publishing, a.s., 2016. 380 stran. ISBN 978-80-247-5871-8. (CS)
Rejnuš, Oldřich. Finanční trhy. 4., aktualiz. a rozš. vyd. Praha: Grada, 2014. 760 s. Profesional. ISBN 978-80-247-3671-6. (CS)
Cipra, T.: Praktický průvodce finanční a pojistnou matematikou. Praha: HZ, 1995 (CS)
Meluzín, T. Finanční trhy-cvičení. Brno: CERM, 2005. 1. vyd. ISBN 80-214-3048-6. (CS)
Polidar,V.: Management bank a bankovních obchodů. Praha, Ekopress, 1999 (CS)
ŠOBA,O., ŠIRŮČEK, M.: Finanční matematika v praxi. 2., aktualizované a rozšířené vydání, Grada, Praha, 2017. ISBN 978-80-271-0250-1. (CS)
Jílek, Josef. Finanční a komoditní deriváty. 1. vyd. Praha: Grada, 2002. 624 s. Finanční trhy a instituce. Finance. ISBN 80-247-0342-4. (CS)
Planned learning activities and teaching methods
The course is taught through lectures explaining the basic principles and theory of the discipline. Exercises are focused on practical topics of financial mathematics.
Assesment methods and criteria linked to learning outcomes
The course-unit credit is awarded on condition of successful completion of a written test which is focused especially on financial mathematics. The test contains five examples for each correct calculation example a student can get up to 5 points. Student of the test can get 25 points, the minimum number of points for which a credit is granted is 15. Passing the test and thus the course-unit credit is subject to the student's admission to the examination. The result of the written test consists of 30% and result of oral constitute 70% of the total classification.
Completion of the course for students with individual study:
The conditions are the same, only credit is awarded only on the basis of a credit test, which contains 10 examples, of which for each correctly calculated example the student can get a maximum of 5 points.
The conditions for granting the credit are the same as for students with individual study. The exam will take the form of a test that will contain 20 multiple-choice questions, some of which may be correct. For each correct answer the student will receive a point, for each incorrect answer the point will be deducted. Unchecked answers will not be evaluated. The condition for successful passing of the exam is the achievement of at least 70% of possible points (evaluation by classification level E). Upon reaching 75% of the possible points, it will be graded D; when 80% of the possible points are reached by grade C; when 85% of the possible points are reached by grade B and when 90% of the possible points are reached by grade A.
Language of instruction
Contents of lectures:
Types of financial transactions
- Direct and indirect funding, the types of financial markets
- Factors integration of financial market segments
- Current trends in the financial system
- The banking system, banking institutions, banking transactions, bank products
- Other non-banking financial market institutions
The theory of interest rates and their effect in the financial system
Introduction to the theory of financial investments
- The definition of "investment," their distribution and basic characteristics
- Supply and demand in investment financial instruments
- Basic factors of investment strategies for investor
- The interdependence of investment factors
The financial investment tools
- Business (corporate) shares
- Developments in the financial markets in the different stages of the economic cycle
Stocks and bonds of collective investment
- Definition of spot and futures
- Fixed-term contracts, forwards and futures
- Swap contracts
- Option contracts
- Synthetic (composite) financial derivatives
The content of the seminars:
- Simple and compound interest
- Saving and pensions
- Securities valuation
- Exchange trading of shares
- Trading of bonds, foreign currencies and commodities
- Credit test
The main objective of the course is to teach students how to understand ding financial system as the integral part of an economic system as well as its role, substance and importance of its functioning. Students will learn how to actively participate in standard types of financial operations with individual types of investment financial tools, from the corporate financial transactions point of view as well as from the personal finances management point of view. Also dealt with are the fundamentals of financial mathematics necessary for financial practice.
Specification of controlled education, way of implementation and compensation for absences
The control of participation is fully in teacher’s competence. Active participation in lessons, control of knowledge in seminars.
Classification of course in study plans