FIN820 Money and Financial Markets A

School of Business Administration in Karvina
Summer 2007
Extent and Intensity
0/2/0. 5 credit(s). Type of Completion: z (credit).
Guaranteed by
prof. Ing. Daniel Stavárek, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives (in Czech)
The aim of the course is to provide the student with a basic understanding of money and financial markets and how they relate to economic activity. The course is designed around several parts. It covers topics as a role of money and financial market, its organisation, structure and functioning. Follows basics of interest rates, yields, interest rate determination and asset pricing. In the next stage different types of markets as a stock, bond and derivatives markets are explored. The course is capped by explication about stock exchanges and OTC markets within the regions all over the world.
Syllabus (in Czech)
  • Structure of the Course:
    11. Financial Markets and the Subjects of Financial Markets.
    Placement and role of the financial markets in economy. Financial markets functions. Classification of financial market subjects. Functions and kinds of financial agents. Institutional investors. Investment companies and funds. General principles of the assets and liabilities management. Specialised financial agents. Market makers. Regulation of financial markets, causes, goals and tools. The role of state and contemporary trends in state regulation.

    12. Organisation and Structure of the Financial Markets.
    Criteria of financial markets classification, structure and institutional organisation of financial markets in the Czech Republic and in abroad. Primary markets and issue of securities. Secondary securities market, functions and business mechanism. Bond, stock, commodity and foreign exchange markets. Money and capital markets. Efficiency of the financial markets and market efficiency types. Transaction costs. Financial innovation. Contemporary development trends in the world financial markets and its impact to financial system. Globalisation of the financial markets.
    13. Financial Asset Pricing and Interest Rates.
    Financial Asset features. Financial and real investment instruments. Determinates of the investment instruments demand. Analysis of yield, risk and liquidity. Yield to the maturity and other ways of yield measuring. Interest rates theory. Level and structure if the interest rates. Time structure of the interest rates and yield curve analysis.

    14. Theory of Portfolio and Asset Pricing.
    Systematic and unique risk. Measuring of the investments yield and risk portfolio. Diversification. Theory of portfolio, Markowitz and Tobin model. Simple index model. Assumptions of the capital market theory, interpretation of the capital market line. Model of the capital asset valuation (CAPM) and other models.
    15. Money Market.
    Creation and development of the money market in Czech economy. Features of the short term investment instruments. Inter-bank credit market, inter-bank foreign exchange market in the Czech Republic, Europe and USA. Debt and derivative instruments of the money market. Term deposits, deposit certificates, treasury bills. Commercial papers and bills of exchange. Valuation of the discount tools. Forward term deposits, interest forwards, short term interest futures. Short term return curve. Securing, speculation and arbitrage in the money market.
    16. Bond Market.
    Valuation of the bond instruments. Non coupon and coupon bonds in the world and in the Czech Republic. Other kinds of bonds. Creation and development of the bond market in Czech economy. Bond euromarket, bond market in the USA. Main bond indexes. Price elasticity, duration, convexity. Spot and forward yield curve. Characteristic of the bond instruments price volatility. Analysis of the bond market and contemporary economic software.
    17. Stock Market.
    Primary and secondary stock trades. Capital market indicators, general stock indexes in the Czech Republic and in the world. Stock valuation and stock prices behaviour. Inner stock value, fundamental analysis and possibility of its exercise. Characteristic features and principles of the technical analysis. Methods and instruments of the technical analysis, possibility of contemporary software products exercise. Psychological analysis. Global deposit certificates. Stock options, options and futures for the stock index.

    18. Derivatives Market.
    Substance and structure of the derivatives market. Development tendency and changes of the derivatives market structure. Characteristic features of the forward and futures contracts. Mechanism of trades in the futures markets and role of the futures in the financial markets. Substance of the options. Definition, risk and yield of the option contracts, economy role of the options markets. Swaps and its ex
Language of instruction
Czech
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
The course is also listed under the following terms Winter 1990, Summer 1991, Winter 1991, Summer 1992, Winter 1992, Summer 1993, Winter 1993, Summer 1994, Winter 1994, Summer 1995, Winter 1995, Summer 1996, Winter 1996, Summer 1997, Winter 1997, Summer 1998, Winter 1998, Summer 1999, Winter 1999, Summer 2000, Winter 2000, Summer 2001, Winter 2001, Summer 2002, Winter 2002, Summer 2003, Winter 2003, Summer 2004, Winter 2004, Summer 2005, Winter 2005, Summer 2006, Winter 2006, Winter 2007, Summer 2008.
  • Enrolment Statistics (Summer 2007, recent)
  • Permalink: https://is.slu.cz/course/opf/summer2007/FIN820