Course notes Financial Management
What is Finance?
Finance is the art and science of managing financial and real assets
The processes, institutions, markets, and instruments involved in the transfer of money between individuals, businesses, and governments form the foundation of the study of finance
Career Opportunities in Finance
There are three areas of the opportunity for finance graduates.
Financial Institutions
Banks, Insurance Companies, Mutual Funds, and Investment Banks
The following skills are important:
Valuation techniques
Interest rate models
Regulations
Types of financial instruments
General business administration
Communications
A common entry-level position is bank officer trainee
This include learning teller operations
Cash management operations
Making loans
May become a branch manager or a specialist in one of many areas.
Investments
Often starting in brokerage houses in Sales, Security Analyst or Financial Planning
Others work in banks, mutual funds, insurance companies, or financial consulting firms.
The main functions are sales, security analysis, and management of investment portfolios
Financial Management
This is the largest area of the 3 with opportunities in financial institutions, industrial and retail firms. Also, there are opportunities in government and non-profit organizations.
Responsibilities include deciding credit terms level of inventory level of cash merger and acquisition analysis and dividend policy.
Capital Budgeting
Investment Analysis
Financial Forecasting and Planning
Cash Management
Credit Administration
Funds Procurement
Financial Risk Management
Regardless of which area of finance majors enter into, he or she will need knowledge of all three.
Modern Corporate Finance
In the early 1900s Financial Management emphasized the legal aspects of mergers, the formation of new firms, and the various types of Securities that firms could issue to raise capital. In the 1930s the emphasis shifted to bankruptcy and
Finance is the art and science of managing financial and real assets
The processes, institutions, markets, and instruments involved in the transfer of money between individuals, businesses, and governments form the foundation of the study of finance
Career Opportunities in Finance
There are three areas of the opportunity for finance graduates.
Financial Institutions
Banks, Insurance Companies, Mutual Funds, and Investment Banks
The following skills are important:
Valuation techniques
Interest rate models
Regulations
Types of financial instruments
General business administration
Communications
A common entry-level position is bank officer trainee
This include learning teller operations
Cash management operations
Making loans
May become a branch manager or a specialist in one of many areas.
Investments
Often starting in brokerage houses in Sales, Security Analyst or Financial Planning
Others work in banks, mutual funds, insurance companies, or financial consulting firms.
The main functions are sales, security analysis, and management of investment portfolios
Financial Management
This is the largest area of the 3 with opportunities in financial institutions, industrial and retail firms. Also, there are opportunities in government and non-profit organizations.
Responsibilities include deciding credit terms level of inventory level of cash merger and acquisition analysis and dividend policy.
Capital Budgeting
Investment Analysis
Financial Forecasting and Planning
Cash Management
Credit Administration
Funds Procurement
Financial Risk Management
Regardless of which area of finance majors enter into, he or she will need knowledge of all three.
Modern Corporate Finance
In the early 1900s Financial Management emphasized the legal aspects of mergers, the formation of new firms, and the various types of Securities that firms could issue to raise capital. In the 1930s the emphasis shifted to bankruptcy and