Corse outline
Course unit title
Name and title of lecturer
Level of course
Semester
ECTS credits
Student’s working hours
Prerequisites
Financial Markets and Investments
Laima Urbšienė
Cycle 1
6
5
Contact hours
48
lectures 24
seminars 16
practical classes
laboratory classes
consultations 8
Independent work
82
Total 130
Micro and macroeconomics, accounting, corporate finance,
fundamental of statistics
Language of instruction
Lithuanian, English
Objectives of the course
Learning outcomes
To develop the knowledge and
skills expected of a finance
manager,
in
relation
to
investment and raising funds as
well as the knowledge and skills
needed to manage personal
portfolios.
Methods of studies: Lectures, Developed abilities:
seminars/workshops, business
situation
analysis
(case Practical abilities:
studies),
independent
theoretical studies, individual  develop in candidates the skills
reasonably expected from a
tasks, consultations.
finance manager responsible for
a business finance function.
Provision of knowledge on:
Explain the theoretical and
practical
aspects
of
the 
functioning of financial markets.
Develop the financial instrument
management skills and abilities
to operate the main concepts,
characteristics,
principles, 
theories, models and functions,
and to efficiently apply the same
for a personal financial portfolio
management.
Introduce students to the
fundamentals
of
financial
markets: market participants,
Assessments methods
principles, methods and 
objectives
of
the
organization
and
functioning of financial
markets;
the
organizational
structure of a financial
market:
participant,
financial institutions and
intermediaries, authorities
regulating the operations 
of securities markets and
institutions
organizing
trading
in
securities,
1
develop the skills to form an
investment
portfolio
from
different financial instruments
taking into account the risk,
return rate and liquidity factors,
as
well
as
investment
objectives, and allocating the
funds between debt and equity
securities and other financial
instruments;
manage temporary disposable
cash flows investing the same
into money market instruments;
authorities regulating financial
markets
and
organizing
activities thereof; securities and

other financial instruments.
Develop the understanding and
knowledge in the area of
securities as a means of fund
raising and an investment object,
and the organization of public 
trading in securities.
Introduce
students to the
authorities participating in and
organizing the public trading
market, financial institutions and
public trading intermediaries,
principles,
methods
and 
objectives
of
market
functioning.
Develop the understanding and 
knowledge
in
collective
investment undertakings, their
variety,
characteristics
and
related risks.
Develop an ability to form an
investment portfolio of different 
financial instruments having
regard to the acceptable return
rate and liquidity factors.

Develop an understanding in
and knowledge of foreign
exchange markets. Teach to
calculate currency cross rates,
assess risk and introduce to risk
minimization measures.


objectives and functions of

such institutions.
methods of trading in and
settlement for securities
with particular focus upon

the organization of public
trading in securities;
securities
and
other
financial instruments, their
characteristics with a
special focus on the risk
and return ration and their
usage utilization
select the most efficient
solutions for the acquisition and
disposal of securities and
acquire the same;
formulate a corporate financing
strategy selecting between
banking financing (different
short-term
and
long-term
banking products) and the
funding facility by issuing
equity or debt securities and
placing the instruments for
private or public offering;
efficient
market 
hypothesis (EMH) and
valuation of shares;
assess the risk factors related to
securities and other financial
instruments (units of investment
funds, units of pension funds);
carry
out
effective
investment appraisal and 
evaluate
alternative
sources
of
business
financing;
forecast the debt securities price
development having regard to
the changes in the market
interest rates;
evaluate
business
possibilities;
alternative 
financing
investment
funds,
principles
for
the
organization
and
functioning of investment
funds, their diversity, 
classification
and
assessment;
foreign exchange markets,
participants
of
such 
markets and currency
quoting;

exchange
minimization
and
2
efficiently select an investment
fund having regard to the
tolerable risk, also asset
allocation and returns, analyze
the
investment
fund
performance ratios and be able
to assess the inherent risk;
select a pension management
company and a pension fund
according
to
securities
allocation;
the nature and types of risk and
approaches to risk management;
calculate the currency crossrates, assess the currency risk;
risk
measures
 buy and sell currency, establish
arbitration
the currency exchange cross-
possibilities;
rate, assess the currency risk
and forecast the currency rate
development in a long-term
perspective having regard to
macroeconomic indicators;

explain risk management
techniques in business;

hedging techniques for
foreign
currency and  manage the currency and price
interest rate risks.
change risk by selecting
individual derivative financial
instruments.
Cognitive skills:
Understand the complexity and the
risks of a financial market,
understand the impact of the market
upon the value of the financial
assets portfolio and corporate
funding.
Transferrable skills:
analytical thinking;
team work;
personal development.
Students are encouraged to apply
the knowledge they acquire in the
formation of a company‘s financing
strategy, or in compiling a
company’s financing strategy or
personal investment portfolio. This
requires not only the general and
analytical knowledge in the area of
financial markets, but also some
special competences such as
disclosure of personal approach and
formation of personal skills in
analyzing the current market
situation, skills in applying the
knowledge
while
working
individually or in a team. The
course will dedicated to developing
the skill to collect and generalize
the necessary information, present
the information with some critical
assessment, substantiate one‘s
opinion or proposals and be able to
3
represent the team.
Teaching methods
Lectures, seminars/workshops, business situation analysis (case
studies), independent theoretical studies, individual tasks,
consultations.
Course unit content
Lectures will include a presentation of the organizational structure
and participants of financial markets, regulating and supervising
authorities, legal environment, principles, methods, objectives of the
organization and functioning of a financial market, methods of
trading in and settlement for securities markets with a particular
focus to the organization of public trading in securities.
Analysis of securities and other financial instruments, their
characteristics with particular focus on return rate and risk ratio, as
well as their utilization
Discussion of investment funds, their organization and functioning
principles, their characteristics, diversity and classification.
Students will be introduced to foreign exchange markets, their
participants, objectives, currency quoting, and measures to minimize
the currency risk and arbitration possibilities.
The course will specifically emphasize the applicability aspect: The
discussion of the most important subjects and themes will include
some practical tasks (collection of market data from public
information, and related calculations), analysis of received results,
interpretation and assessment of the results on the basis of actual
examples from financial markets.
Significant attention will be dedicated to different kinds of group
practical tasks and presentation of the results. The practical tasks
will facilitate the strengthening of systemic and logical thinking
skills.
Topic title
Contac
t hours
Independent study
h
Assignments
2
Introductory lecture
10
1. Introduction to financial markets
4
10
1 Financial Markets Problems
Quiz
Assignment 1. Enterprises and
the ways of raising capital
Assignment 2. Fill in the tables
about the different types of
markets and trading ways.
Gr. 1.2. Listing requirements
Assignment
10
2. Securities and other financial instruments
20
Gr. 1.3. Current financial crisis
Assignment
TESTS
2.1. MM instrumentsQuiz
2.2. Debt securitiesQuiz
2.3. EquitiesQuiz
2.4. Derivatives Forwards
and futuresQuiz
2.5. OptionsQuiz
ASSIGNMENTS
for INDIVIDUAL WORK
2.1.-2.2. Comparison of Debt
InstrumentsFile
2.3. Comparison of Forwards ir
FuturesFile
2.1. Comparison of money
market instrumentsAssignment
2.2. Comparison of money
market instruments and
bondsAssignment
2.3 Comparison of
Forwards and
FuturesAssignment
10
3. Collective investment undertakings
20
3.1A . Investment Fund Value
CalculationsAssignment
3.1B. CIU Market In
LithuaniaAssignment
3.2A. CIU Comparrison
(Lithuanian)Assignment
3.2B. CIU
ComparrisonAssignment
3.3.A. ProblemAssignment
3.3.B. Problem Assignment
5
3.4. ProblemsAssignment
3.6. Investment portfolio
Workshop
3.6. Investment portfolio Excel
file for teacher evaluationAssignment
3.1.Gr. Presentation. Main
investment objects and main
limitations of Special CIUAssignment
Assessment of a financial instrument portfolio.
Investment instrument efficiency parameters.
4. Foreign exchange market
8
12
8
20
Individual portfolio preparation and
evaluation
4.1.A. Homework Quiz
4.1.B. Homework Quiz
4.1.C. Homework Quiz
4.2. Cross Rates Quiz
4.3. Buy-Sell, Cross rates Quiz
4.4. Purchasing Power Parity
Quiz
4.5. Interest Rate ParityQuiz
4.6. Foreign Exchange
Arbitrage
4.1. Retail and Wholesale
FOREX market
4.2. Big Mac Standart
48
82
Reading list, no more than 5 sources
Year of
publishing
Authors and title of the publication
Publishing house
2009
Brown, K.C., Reilly F.K. Analysis Investment and
Management of Portfolios
South-Western Cengage Learning
2008
2011
Gitman L.J., Joehnk M.D. Fundamentals of Investing.
Madura, Financial Institutions and Markets
Pearson
6
2010
2010
2007
Steiner R. Mastering Financial Calculations
Sounders, A. & Corenett M.M. Financial Markets and
institutions.
Rose Peter S. Money and capital markets
Additional reading
Year of
publishing
Authors and title of the publication
McGraw-Hill
Irwin
Publishing house
Prentice Hall
Levy H. Fundamentals of investments
Valdez, S. & Molyneux P. (2010). Global Financial Markets.
Palgrave Macmillan
2010
Pilbeam K. Finance &Financial Markets
Tests, written answers to questions, calculations, reports and
Assessment requirements
presentation,
Assessment criteria
Practical abilities, Cognitive skills, Transferrable skills
2008
2010
The composition of final
accumulative mark
The accumulative mark consists of three parts: Interim examination
25% + final examination 25% + tests 20% + discussions, home
assignments 20% + portfolio 10%.
Course outline arranged by
Dr. Laima Urbšienė
Approved by the Study
Program Committee
Date, Chairman’s signature
7