Financial instruments

optional courses

The purpose of the seminar is to teach students how to recognize and utilize the most important features of chosen financial instruments in their practical aspects. Especially we concentrate on bank-tailored products frequently used in Poland and money- and capital market securities. For simplicity, all considered instruments are divided in two groups, traditional financial instruments and clearing instruments. To the first set we reckon, for example: stocks, bonds, mutual fund’s instruments, deposits, loans, derivatives (like forward, futures, warrants, option, swaps and much more). The second group covers: guarantees, bills of exchange, factoring services, forfaiting, asset backed securities, direct debit, order payments, documentary credits and so on. Some pros and cons are discussed on the choice between different instruments realizing the same financial goals.

The final grade depends on points received from Power Point presentation (max 12 points) and from exam (max 40 points).

1. Introduction and rules of assesment.Financial instruments as a part of financial system.

2. Capital market instruments: stocks, bonds, notes, pre-emptive rights, rights to shares, depository receipts, index certificates, index participation units, structured products, subscription warrants, warrants, bill of lading, etc.

3. Investments funds intruments: certificates of investment, participation units, ETFs, special forms of investment funds (money market funds, securitization funds, umbrella funds, hedging funds, etc.).

4. Money market instruments: outrights, REPO's, SBB's, money market bonds, treasury bonds, commercial papers.

5. Deposits, certificates of deposit, saving bonds, different kinds of loans, leasing.

6. Guarantees, stand-by letters of credit, contract clauses.

7. Forwards, futures, options (including exotical and coumpound), swaps (IRS, CS, CIRS OIS, etc.) and other derivatives (including catastrophic and credit derivatives).

8. Bills of exchange, factoring services, forfaiting, debt purchase transactions, asset backed securities.

9. Cheques, money transfers and similar clearing forms, direct debit, payment cards.

10. Clean payment instruments: order payment, traveller's cheque, money orders, and documentary payment instruments: documentary credit, letter of credit, documentary collection.

J. Kudła, „Instrumenty finansowe i ich zastosowania”, Keytext, Warszawa 2009

Slides prepared for the course and located at Internet site.

Student is able to recognise different types of financial instruments, their utility and practical applications.

He or she is able to provide an explanation for special purposes for chosing the appropriate financing technics in practical problem solving. Students can prepare the short PowerPoint presentation about financial instruments utilizations in Poland and abroad, working in two-person groups. Student is able to long-live study, chosing priorities of given task, aply instruments to the professional needs KU05, KU06, KK01, KK03, KU04, KU03. KU02, KU01, KW03, KW02, KW01

The final grade depends on points received from Power Point presentation (max 12 points), short class test (8 points) and from writen exam (max 32 points). There are no more than two absences acceptable for obtaining the qualifications of the seminar. The presentations are submited to the internet site of the course.