Focus in one of two highly specialized paths of financial management expertise
The Finance functional specialization starts with two required courses: Advanced Financial Management and Investment Management. Students may then select one of two elective paths in their functional specialization based on their area of interest.
Corporate Finance: Professionals in this area are responsible for managing liquidity, monitoring corporate performance via financial statements and evaluating capital budgeting projects. They also manage risk and perform a multitude of additional tasks that are vital to ensuring that the productive engines of the global economy operate at maximum efficiency.
Investments: In the investments world, the primary question is “what is it worth?” To answer this question, investment industry professionals must be intimately familiar with the details of numerous securities such as stocks, bonds, options, futures, swaps and structured products like mortgage-backed securities. Moreover, successful investment professionals must be well versed in a wide array of quantitative valuation methodologies.
| Finance Functional Specialization |
FINA 761 - Advanced Financial Management
FINA 762 - Investment Management
| Corporate Path || |
| Investment Path |
| FINA 746 - Risk Management |
| || FINA 737 - Derivative Securities |
| FINA 756 - Financial Statement Analysis || || FINA 770 - Fixed Income Securities |
| IBUS 711 - Global Valuation || || FINA 772 - Portfolio Management |
Course Descriptions: *FINA 762 - Investment Management: Emphasizes the importance of hands-on data-processing skills and uses evidence-based discussions to understand practical techniques for valuing equity securities. The goal is to develop a sensible portfolio management process using various real-world investment strategies.
*FINA 761 - Advanced Financial Management: Utilizes the case study method combined with lectures to deepen understanding of key corporate finance concepts such as financial statement analysis, estimating a firm’s cost of capital, evaluating capital budgeting projects, optimizing a firm’s capital structure, deciding on the appropriate payout policy for a firm, and managing risk via derivative securities.
FINA 737 - Derivative Securities: Introduces the wide array of financial derivative products such as forwards and futures, options, swaps, credit default swaps, etc. The emphasis is on arbitrage relations, valuation, and risk management with derivatives. The course also covers the implementation of derivatives trading strategies, the use of derivatives in securities markets, and recent innovations in derivative markets.
FINA 746 - Risk Management: Focuses on how a business handles various categories of risks and uncertainties, how these risks interact and interrelate with each other, and how managers must make decisions based on various tradeoffs. In particular, how is risk managed in the pursuit of creating value for both non-financial and financial firms? Both pre-crisis and new and emerging views of risk management will be addressed.
FINA 756 - Financial Statement Analysis: Understanding how a company is really performing is vital to executives, investors, corporate loan officers, and potential acquirers. Thus, understanding financial statements in detail is vital. This course educates students on the major differences between earnings and cash flow from operations and between net income and comprehensive income, how financing choices affect operating results, what constitutes reoccurring earnings, how to benchmark your company to other companies in your industry, and how company performance is likely to vary with changes in economic and regulatory environments.
FINA 770 - Fixed Income Securities: Provides extensive coverage of the wide range of fixed-income products and the tools employed by market participants to analyze them. The level of the presentation is the same as one would experience attending fixed-income training programs at dealer firms on Wall Street (where the instructor has taught.) Emphasizes the applications of the material presented in class to problems/situations encountered by market participants. The course, which is fairly quantitative in nature, includes many real world exercises that require the student to use the Bloomberg terminal and the CITI Group Yield Book.
FINA 772 - Portfolio Management: Utilizes the techniques learned in 762 to analyze and recommend investment opportunities for a portion of the Moore School endowment. The course culminates with a sequence of presentations and recommendations to the Moore School’s Business Partnership Executive Board.
IBUS 711 - Global Valuation: Emphasizes valuation of corporations, particularly in an international context. Also covers many of the distinctive challenges faced by international businesses such as managing exchange rate risk, quantifying political risk, and navigating an array of different tax regimes. Extends many of the skills learned in FINA 761. The course utilizes a mix of case study and lecture-based instruction.
(*Indicates required course for Finance Functional Specialization)