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