No. 1/2010
5
EDITORIAL
Financial theory defines various categories of asset classes, such as shares, bonds (or tools
with fixed interest rates), currencies, real estates and commodities. In the past decade,
financial and capital markets have undergone highly dynamic development. Suddenly,
everything, even hedge funds, which aim at reaching the “absolute return”, private equity,
but also volatility started to be referred to as asset classes.
The differences between institutional and private investors have been erased. Global
barriers have been removed as well as the minimum amount necessary for investments.
All market participants now have the opportunity to allocate their means quickly to very
specific financial instruments.
This change dynamics has had its impact on other fields; however, these may not realize
the risks related to investments in asset classes. It is a well-known fact that from a longterm
perspective, particular asset classes bring revenues which correspond to the risks
connected with investments into them. Above-average revenues are usually connected
with above-average risks.
Therefore, the content of Financial Assets and Investing, the journal you are now holding,
focuses on the development, analyses, efficiency and performance of capital and financial
markets; the analyses, development and performance of particular financial instruments
traded on these markets; banking and the insurance industry and their regulatory
framework; accounting and tax regulations concerning trading on capital and financial
markets and individual investment instruments; also the assessment, analysis and
comparison of risks connected with these investment instruments, but also their
development tendencies, their usage in entrepreneurial activities, and the impact they have
on the economy of entrepreneurial entities.
The first issue of the journal is bringing two reviewed papers. The first one, written by
Kate ina Randová, analyses the potential impact of the relevant Directive implementation
into the Czech VAT Act on the tax liability of the suppliers of locally supplied services.
The author of the second paper, Svend Reuse, deals with the question whether alternative
risk models lead to different results compared to the classical variance/covariance
approach. Two reviews of professional books follow.
We believe the presented papers will attract your attention and enrich your knowledge in
the field of finances.
Martin Svoboda