Finance I

obligatory courses

(in Polish) Pomocna w zaliczeniu przedmiotu może być podstawowa znajomość zasad funkcjonowania systemu finansowego i jego elementów, a także elementarna wiedza z zakresu rachunkowości.

The main aim of the lecture "Finance I" is to combine theoretical knowledge of finance and economics with the practical application of instruments and methods used on financial markets, taking into account the role of the state in creation a stable financial system. As part of the course students will learn about the role of the financial system in the economy, the main money and capital markets instruments and their use for selected strategies, financial reporting of the company and general assessment of its financial and economic situation, and then the criteria for selecting investment projects undertaken by enterprises. Students will learn the main tools of fundamental analysis and technical analysis of financial assets. Selected derivatives will also be discussed.

Individual meetings of the lecture are focused on the following matters:

1. The role and structure of the financial system - characteristics of money, circular motion in the economy, characteristics, elements and functions of the financial system. Warsaw Stock Exchange.Types of financial instruments and financial markets (spot, futures and forward, option).

2. Money market - segments and instruments of the money market, interbank deposits, bills, certificates.

3. Capital market. Structure of the market. Stock markets worldwide. Primary market. Stock exchange. Asssets traded. Risk on capital market. Investing on the stock market. Framework of fundamental analysis. Common Ratios and what they mean. Technical Analysis. Trendlines. Price patterns.

4. Analysis and valuation of bonds - types of bonds, the factors affecting the price of bonds, the gross price, the net price and interest accrued on the bonds, numerical characteristics of bonds, interest rate risk, bond-investment strategies (immunization, strategy of the adjustment of cash flows).

5. Structure and analysis of financial statements - types, importance and auditing of financial statements, elements of financial statements, vertical and horizontal analysis of the balance sheet, income statement and cash flow statement. Criteria for investment decisions - financial investment, simple and discounted payback period, return on investment period and annual, the net present value, internal rate of return.

Mandatory literature:

W. Dębski, “Rynek finansowy i jego mechanizmy”, PWN 2014

Additional literature:

Blake, Financial Market Analysis, John Wiley and Sons, 2000

J. Czekaj, ,,Rynki, instrumenty i instytucje finansowe’’, PWN 2008

K.Jajuga, T. Jajuga, Inwestycje. Instrumenty finansowe. Aktywa niefinansowe. Ryzyko finansowe. Inżynieria finansowa. PWN 2015

Basic and medium level knowledge about markets, securities, general environment, conditions and rules for undertaking financial decisions.

KW01, KW02, KW03, KU01, KU02, KU03, KU04,