Transcript Overview of Finance - E. J. Ourso College of Business

Overview of Finance
Flores MBA Program
E. J. Ourso College of Business
Don Chance
August 24, 2007
What is Finance?
 Capital is wealth that is used to generate
more wealth.
 Finance is the discipline concerned with or
the study of how to acquire and utilize capital
to the greatest benefit.
 In other words, finance deals with how value
is created.
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The Value Creation Process
Capital
$
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Financial
Management
Decisions
Shareholder
Wealth
$
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Three Areas of Finance
Finance
Financial Markets
Investments
Corporate Finance
Securities Trading
Financial Analysis
Financial Management
Financial Intermediaries
Portfolio Management
Investment Banking
Derivative Securities &
Risk Management
Real Estate
Venture Capital
Note: Topics are not always distinct and can cross all areas of finance
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The Primary Areas of Employment
Finance
Corporations
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Financial
Services
Government
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Types of Jobs Held by Finance Graduates
 Financial analyst
 Mergers and acquisition analyst
 REIT manager
 Financial consultant
 Credit analyst
 Portfolio manager
 Mortgage administrator
 Bank lending officer
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BADM 7090 -- Financial Management
 A required course in the Flores MBA program,
taken in the second semester of the first year, it
covers the following principal topics:
 What determines the value of a company
 How companies create value by investing in assets
 How investors decide which securities to hold
 How expected returns from investment are determined by risk
 How companies obtain financing
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Specializing in Finance
• The Flores MBA has 12 hours of
electives, distributed as follows:
– 1st year, spring: 3 hours
– 2nd year, fall: 3 hours
– 2nd year, spring: 6 hours
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Finance Courses Currently Offered for
Graduate Credit

FIN 4828 – Security Analysis and Portfolio Management

FIN 4830 – Analysis of Corporate Financial Statements

FIN 4850 – Financial Derivatives

FIN 7300 – Seminar in Real Estate

FIN 7310 – Real Estate Financial Decisions

Fin 7400 – Financial Risk Management

FIN 7633 – Financial Markets

FIN 7718 – Multinational Financial Management

FIN 7719 – Advanced Financial Management

FIN 7720 – Topics in Business Finance

FIN 7740 – Venture Capital and Investment Banking

FIN 7826 – Investment Analysis and Portfolio Theory

FIN 7845 – Student Managed Investment Fund

FIN 7900 – Individual Study in Finance (can be taken more than once)
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A Finance Concentration
 You have 12 hours of electives and should take them all in
finance.
 Start by taking FIN 7826 in the spring of your first year if possible
(especially if you have had some previous work in finance). This
course is designed so that you can take it concurrently with BADM
7090.
 You can build your own concentration in one of two areas of
finance. We recommend that you choose from the following:
 Investments: 7300, 7310, 7400, 4828, 4850, 4830, 7633, 7845
 Corporate finance: 7719, 7718, 7720, 7400, 4830
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A Finance Concentration
 These courses are currently offered on the
following schedule. This is subject to change
depending on faculty availability. Some
courses are offered irregularly depending on
demand and faculty availability.
 Fall: 4830, 4850, 7310, 7718, 7719, 7826, 7845,
7900
 Spring: 4828, 4830, 7300, 7400, 7826, 7845, 7633,
7720, 7900
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And, do the following:
• Read The Wall Street Journal and follow the
financial markets
• Start working early to line up an internship.
Some companies begin hiring summer
interns in October.
• Read good books on finance, such as
–
–
–
–
B. Malkiel, A Random Walk Down Wall Street
P. Bernstein, Capital Ideas
P. Lynch, Beating the Street
N. Taleb, Fooled by Randomness
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Some Words of Advice
• People who have taken finance will tell
you that finance is
– Extremely challenging
– Extremely interesting
– Extremely rewarding
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The LSU Finance Faculty
• Corporate Finance: David T. Crary, Cliff Stephens,
Ayla Kayhan, William R. Lane, Shan He
• Investments: Jimmie E. Hilliard, Ji-Chai Lin, Gary C.
Sanger
• Real Estate: R. Kelly Pace, V. Carlos Slawson
• Financial Markets: Don M. Chance, Wei Li, Wei-Ling
Song
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In addition, we have
•
•
•
•
The Student Managed Investment Fund
The SMART Lab
CFA exam preparation
Bloomberg certification
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The LSU Finance Department
Visit us at
 http://www.bus.lsu.edu/academics/finance/
 2163 CEBA
 578-6291, 578-6366 (fax)
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