FIUBKFIT Financial Markets

School of Business Administration in Karvina
Winter 2024
Extent and Intensity
16/0/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Tomáš Heryán, Ph.D. (lecturer)
Guaranteed by
Ing. Tomáš Heryán, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Contact Person: Ing. Irena Szarowská, Ph.D., MPA
Timetable
Fri 11. 10. 11:25–13:00 B308, Fri 1. 11. 11:25–13:00 B308, Fri 22. 11. 11:25–13:00 B308
Prerequisites
FAKULTA(OPF) && TYP_STUDIA(B) && FORMA(K) && (ROCNIK(2) || ROCNIK(3))
None
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 80 student(s).
Current registration and enrolment status: enrolled: 53/80, only registered: 2/80
fields of study / plans the course is directly associated with
Course objectives
The course introduces students to the basics of financial markets not only in the Czech Republic, the types of financial instruments traded on the spot, secondary, stock, and OTC markets. Emphasis is placed on clarifying approaches to measuring financial assets, risk analysis, and the basics of portfolio theory concerning those ESG factors. Also, students are introduced to the basics of econometric software EViews through dealing with the issue of stationarity, correlation analysis, long-term and short-term causality, as well as regression analysis.
Learning outcomes
Seminar paper focuses on the analysis of time series with stock market data.
Syllabus
  • [1] Financial market: The essence of the functioning of the financial market, including a brief introduction to its channels, the banking market and the securities market. Allocative, operational efficiency. Allocation of savings by households. Information asymmetry, interconnectedness of the two channels through securitization. Follow-up on issues of global financial crisis, Eurozone debt crisis, COVID-19 disease pandemic. Learning Outcome: The student will then be able to identify not only the basic types of investment instruments but also the factors that play a major role in investment decision-making, correctly taking into account increasingly recurrent crisis scenarios. It defines adverse selection and moral hazard.
  • [2] Money market: Money market instruments. Distinguishing issuers of short-term securities. The practical importance of money market interest rates for the economy. Deficit financing and fundamental differences from equity securities in terms of investors' rights. Learning Outcome: Can explain the basic relationships between changes in market interest rates and the effect on the price of selected investment instruments when the issue of green bonds is first introduced. The student can distinguish between interbank interest rates and central bank interest rates. In addition, the student can explain how these rates may or may not affect the value of an investment and why this is so.
  • [3] Capital Markets: Bond Market. Basic breakdown of bonds and the firm's decision-making before issuance. Basic calculations for duration and convexity. Stock market, equity issuance. Fundamental, technical and psychological analysis. Portfolio theory. The importance of "green" investing in portfolio construction, future leverage of ESG companies versus "brown" investments. Specific ETFs and collective investment funds. Learning Outcome: The student is already able to differentiate between equity and bond investments, where he/she can apply the acquired knowledge of fundamental and technical analysis in portfolio construction. When constructing a portfolio, the student will understand the risk of leverage, which in the future will bring a significant degree of volatility in stock prices.
  • [4] Financial Derivatives: Selected risks in financial markets. Spot and forward transactions. Fixed and contingent financial derivatives. Natural hedging versus hedging by an exporting company through financial derivatives. Financial futures, Forwards, Swaps and Options. Long and short positions in the case of option contracts. Selected types of exotic financial derivatives. Learning Outcome: The student will be able to define the basic types of financial derivatives, including advantages and disadvantages. The student will be able to differentiate between selected types of risk when diversifying risk, particularly market, interest rate, and foreign exchange risk. Using an example, the student will be able to illustrate the hedging of foreign exchange risk by a Czech export company using a currency forward. In the case of option instruments, the student will be able to distinguish between long and short positions, both call and put options.
  • [5] Commodity markets: The importance of commodities in terms of investing and portfolio construction. Inflation and commodity investments. Portfolio protection in terms of volatility in financial markets. Introduction to selected types of commodities. Comparison of commodities in terms of global impacts on sustainability and environmental prudence. Learning Outcome: Be able to define the inclusion of commodity instruments in an investment portfolio in terms of inflation risk. Understands, however, the need to actively manage this part of the portfolio in the event of a sudden increase in the market price level compared to other types of investment instruments. In terms of sustainability, the student can distinguish between commodities that are closely related to environmental prudence and sustainability.
  • [6] Time Series Analysis: Familiarity with EViews and importing real data from MS Excel. Daily earnings per share. Share price volatility. Stationarity. Correlation analysis. Short-term and long-term causality. Construction of a regression model and checking the accuracy of its output. Students will search for investment opportunities independently, selecting those whose price performance can be subjected to correlation and volatility analysis in subsequent seminars so that the leverage ESG investments offer in the future is evident. Learning Outcome: The student will be able to analyse time series with prices of investment instruments in a completely new way, by including in his/her seminar paper one ESG title in addition to traditional equity titles, to see how such a title differs in terms of cyclicality or how differently its prices react to the COVID-19 disease pandemic. They can define what a correlation matrix is, which they learn to apply, including basic stationarity tests where they understand the need to express daily returns and examine their basic descriptive statistics such as standard deviation
Literature
    required literature
  • HERYÁN, T. Finanční trhy. OPF SU, Karviná, 2014. ISBN 978-80-7510-022-1. info
  • PURCELL, K. and B. VIVARI, 2023. Sustainable Investing: An ESG Starter Kit for Everyday Investors. Business Expert Press. 978-1637425107.
  • RADOVÁ, J., P. DVOŘÁK a J. MÁLEK, 2013. Finanční matematika pro každého. Praha: Grada Publishing. ISBN 978-80-247-8721-3.
  • REJNUŠ, O., 2016. Finanční trhy. 4. vyd. Praha: Grada Publishing. ISBN 978-80-247-5871-8.
  • VESELÁ, J., 2019. Investování na kapitálových trzích. 3. vyd. Praha: Wolters Kluwer. ISBN 978-80-7598-212-4.
    recommended literature
  • CIPRA, T., 2014. Finanční ekonometrie. Praha: Ekopress. ISBN 978-80-86929-93-4.
  • HATHRY, G., 2024. Green Investments: Sixteen (16) keys to investing in eco-responsible projects. Our Knowledge Publishing. ISBN 978-6207309368.
  • Náhradní obsah: HERYÁN, T. a P.G. TZEREMES, 2017. The bank lending channel of monetary policy in EU countries during the global financial crisis. Economic Modelling. ISSN 0264-9993.
  • HERYÁN, T. a J. ZIEGELBAUER, 2016. Volatility of yields of government bonds among GIIPS countries during the sovereign debt crisis in the euro area. Equilibrium 11(1), s. 61-74. ISSN 1689-765X. URL: https://www.researchgate.net/profile/Tomas_Heryan/contr
  • KOHOUT, P., 2011. Finance po krizi – Evropa na cestě do neznáma. 3. rozšířené vydání. Praha: Grada Publishing. ISBN 978-80-247-4019-5.
  • LAOPODIS, N. T. 2013. Understanding Investments: Theories and Strategies. Abingdon: Routledge, Tylor & Francis. ISBN 978-0-415-89162-2.
  • VESELÁ, J. a M. OLIVA, 2015. Technická analýza na akciových, měnových a komoditních trzích. Praha: Ekopress. ISBN 978-80-87865-22-4.
  • Časopisecké články z: Ekonom, Fondshop, Finance a úvěr a jiných periodik dle doporučení vedoucích seminářů. info
Teaching methods
Skills demonstration
Seminar papers
Assessment methods
Written exam
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course can also be completed outside the examination period.
Information on the extent and intensity of the course: Přednáška 16 HOD/SEM.
Teacher's information
Student requirements: seminar work, 60% assessment exam, 20% seminar work, 20% two intermediate tests.
The course is also listed under the following terms Winter 2018, Winter 2019, Winter 2020, Winter 2021, Winter 2022, Winter 2023.
  • Enrolment Statistics (recent)
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