Course details
Basic Elements of Financing
ZF FP ZF Acad. year 2017/2018 Winter semester 5 credits
Financial market structure, institutions and tools. Money market – banking, banking products. The capital market – basic rules of financial investments, investment tools (types of securities and ways of capital market analysis), capital market institutions. Stock exchance. Insurance. Public finance (public revenues and expenditures, state budget, public debt).
Guarantor
Language of instruction
Completion
Time span
- 26 hrs lectures
- 13 hrs exercises
Department
Lecturer
Instructor
Subject specific learning outcomes and competences
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.
Learning objectives
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.
Prerequisite knowledge and skills
Not required.
Fundamental literature
- BROOKS, R. M. Financial management: Core concepts. 3rd ed. Boston: Pearson, 2016. 619 p. ISBN 978-0-133-86669-8
Syllabus of lectures
LECTURES:
1. Introduction.
2. Economic system and the financial market.
3. Banking system.
4. Banking products.
5. Capital market. Prague Stock Exchange.
6. Stocks, bonds, financial derivates.
7. Investment in the financial market. Theory of portfolio.
8. Subjects of collective investment.
9. Insurance.
10. Leasing, factoring, forfaiting.
11. Public finance I (public choice, public revenues and expenditures).
12. Public finance II (public budgets, public debt).
13. Summary. Discussion.
Syllabus of exercises
SEMINARS:
1. Content of the Subject. Requirements. Basics of Financial Mathematics (interest).
2. Basics of Financial Mathematics (saving, annuity).
3. Loans. Building society accounts.
4. Methods of stock's intrinsic value determination. Bonds valuation - duration, convexity, risk, return, yields.
5. Seminar work presentation.
6. Test.
Progress assessment
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. Participation in seminars (one absence during the semester is tolerated).
WAY OF EXAMINATIONS: The written exam is oriented to verify theoretical and practical knowledge. 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
Teaching methods and criteria
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.
Controlled instruction
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.
Course inclusion in study plans