Course detail
Basic Elements of Financing
FP-ZFAcad. year: 2012/2013
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
Number of ECTS credits
Mode of study
Guarantor
Department
Learning outcomes of the course unit
- to define financial market position, importance and function in the economic system;
- to utilize services provided by commercial banks and to understand basic principles of commercial banks’ management;
- 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
Co-requisites
Planned learning activities and teaching methods
Assesment methods and criteria linked to learning outcomes
WAY OF EXAMINATIONS: The exam has a written and an oral part and is oriented to verify theoretical and practical knowledge. Final grade is awarded with respect to semester results of a student.
RULES OF THE CLASSIFICATION: according to rules of study Examination of Brno University of Technology
Course curriculum
Banking system.
Commercial bank, its role and functions.
Capital market. Prague Stock Exchange. Investment instruments.
Stocks and their analysis. Efficient markets theory.
Bills of exchange and their flow.
Bonds and their analysis.
Financial derivatives.
Risk, return and liquidity of investment instruments. Theory of portfolio.
Collective investment institutions, securities traders.
Pension funds. Insurance.
Public finance.
Work placements
Aims
- 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
Recommended optional programme components
Prerequisites and corequisites
Basic literature
Recommended reading
Classification of course in study plans
Type of course unit
Lecture
Teacher / Lecturer
Syllabus
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.and 6. Stocks and their analysis. Efficient markets theory.
Bills of exchange and their flow.
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
Teacher / Lecturer
Syllabus
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.