VSFS:N_SFT Contemporary Financial Markets - Course Information

N_SFT Contemporary Financial Markets

Extent and Intensity

3/0. 5 credit(s). Type of Completion: zk (examination).

Teacher(s)

Ing. Arnošt Klesla, Ph.D. (seminar tutor)
doc. Ing. Vladislav Pavlát, CSc. (seminar tutor)

Guaranteed by

doc. Ing. Vladislav Pavlát, CSc.
Department of Finance – Departments – University of Finance and Administration
Contact Person: Lenka Pokorná

Timetable of Seminar Groups

N_SFT/pFPH: Tue 8:45–9:29 S36, Tue 9:30–10:15 S36, Tue 10:30–11:14 S36, A. Klesla
N_SFT/vFPH: Fri 21. 3. 13:45–15:15 S16PC, V. Pavlát

Prerequisites

No prerequisites for this course are required.

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.

fields of study / plans the course is directly associated with

• Finance and Financial Services (programme VSFS, N-HPS) (2)

Course objectives

The aim of the course "Contemporary financial markets" is to extend the knowledge of financial markets´ problems. The course first discusses the theoretical and methodological issues - theories of financial markets, the financial markets mechanism and the role of interest rates on financial markets. At the end of this course students should be able to analyze the various forms of financial markets, monetary and credit markets, capital markets (bond markets and equity markets) and financial markets and should be able to understand the basics of financial derivatives markets.Students should be able to understand and explain   international money and foreign exchange markets (forms of a market , its specific features, the use of financial instruments and operation mechanism, market participants, the price mechanism price and valuation of financial instruments).

Syllabus

• 1 to 2 Theory FT (z   Bc.studia recapitulation and extension of knowledge): a) concepts: financial system, financial markets. b) Financial Markets classification. FM structure. FM typology - different market segments specific features. c) Financial intermediaries. Transaction costs. Risk. Asymmetric information, adverse selection, moral hazard, conflict of interest. d) Interest rate and its measurement. Nominal and real interest rate. The term structure of interest rates. Expectations theory, the theory of market segmentation, the liquidity premium theory. e) The theory of efficient markets. Weak and strong version. Empirical evidence for and against. f) Factors repricing. g) Risks interest rate. Third: Money maarkets: a) Characteristics of money market - its purpose and significance . b) Types of money markets. c) Specific tools - T-bills, CDs, commercial papers, letters of credit, etc. d) Interest rates. e) Basics of valuation of individual types of instruments. f) Market participants. g) The organization and technique used on different types of money markets. h) The money markets typology. i) Overview of money markets in the world and CR. 4th Bond Markets (BM): a) Characteristics of BM. Purpose and significance of BM. b) Types of BM. c) Instruments - Classification and brief description of different types of bonds. d) Interest rates on BM. e) Basis of valuation of different types of bonds (short recapitulation). f) Market participants g) Organization and techniques used on different types of BM. h) The characteristics of different BM types. i) Overview of the BM in the world and CR. 5th Stock Markets (=SM): a) Characteristics of SM. Purpose and significance of SM. b) Types of SM. c) SM Instruments - Classification and brief description of each type of product type and stock indices. d) Market prices on ST. e) Valuation of shares (short recap). f) Market participants . g) Organization and techniques used on different types of SM. h) Characteristics of different types of SM. i) Overview of the SMin the world and CR. 6th Financial derivatives markets (FDM): a) Characteristics of FDM. Purpose and meaning of FDM. b) Types of FDM. c) Instruments - Classification and brief description of each type of FD - options, futures, swaps. d) Prices. e) Valuation of individual types of FD (brief recapitulation). f) Market participants FDM. g) Organization and techniques used in different types of FDM. h) Characteristics of specific features of different FDM instruments.i) Overview of the FDM in the world and CR. 7th Mortgage markets (= MM): a) Characteristics of MM. Purpose and significance of MM. b) Kinds of MM. c) MM instruments - Classification and brief description of various types of mortgages. d) Prices on MM e) Valuation of mortgages (brief recapitulation). f) MM participants. g) Organization and techniques used on MMT. h) Specific features of MM. i) Overview of MM in the world and CR. 8 to 9 Foreign exchange markets (FEM): a) Characteristics of FEM. Purpose and significance of FEM. b) Foreign exchange and monetary system models (short recap). c) Types of FEM. d) Types of instruments - classification and characteristics. d) A brief recapitulation of theory of purchasing power parity and fundamental factors affecting short-term developments of foreign exchange rates. f) FEM participants. g) Oorganization and techniques used on FEM . h) Specific FEM features. The role of central banks on the FEM. i) Overview of FEM in the world and CR. 10 to 11 International monetary system (=IMS: a) Historical development-brief recapitulation. b) Importance of IMS for financial markets. c) Characteristics of Contemporary IMS and its function in   terms of internationalization and globalization. d) The role of international cooperation on the field of currency     in order to maintain the relative financial stability by reducing deficiences and risks. e) International Monetary Fund-history, function, importance. f) Description of activities other major international organizations influence the development of IMS. g) The role of central banks in ensuring the smooth functioning of IMS   in the payment system. 12th Integration efforts in the monetary area. a) Historical development - a brief recap   integration efforts on the field of currency in the world. b) Integration efforts on the field of currency in Europe - EURO, Eurozone. c) The problem of access of the Czech Republic - the introduction of Euro.

Literature

required literature
• Pavlát V. Globální finanční trhy. Praha. VŠFS, 2013
• Pavlát, V. a kol. Kapitálové trhy. 2. vydání. Praha: Professional Publishing, 2005
• Záškodný P., Pavlát,V., Budík J..: Finanční deriváty a jejich oceňování. Praha: Eupress 2006
• Revenda Z. a kol. Peněžní ekonomie a bankovnictví. 4.vyd. Praha: Management Press, 2005.
• Pavlát, V. Burzy cenných papírů. Praha: VŠFS, 2003
• Durčáková,J.-Mandel,M. Mezinárodní finance. 2.doplněné vydání.Praha: Management Press, 2003

not specified
• Jílek J. Finanční trhy a investování, PrahaGRADA, 2009
• Rejnuš O. Finanční trhy, Ostrava, KEY Publishing, 2008

Teaching methods

Teaching takes the form of lectures, seminars and workshops in the form of full-time study; / controlled group consultations are used in the form of combined study. Minimum mandatory attendance at seminars / workshops in full-time studies is 75%, the controlled group consultations in combined form 50%. Students who fail to meet the mandatory level of participation may be given during the semester additional study obligations (to the extent that will demonstrate academic achievement and acquired competencies necessary for successful completion of course).

Assessment methods

Course is finished by oral examination. Students have to pass a final test and to present a seminar work (to be electronically sent to the teacher)

Language of instruction

Czech

Further comments (probably available only in Czech)

The course can also be completed outside the examination period.
General note: Bb0.
Information on the extent and intensity of the course: 12 hodin KS/semestr.

• Enrolment Statistics (Summer 2014, recent)
  
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