Finance Concentration for Students Matriculated After Jan. 1, 2020
Background
Finance is a branch of applied economics which studies monetary and financial decision making under conditions of risk and uncertainty. Firms and investors utilize various instruments and institutions to manage the transfer of funds from those who save to those who invest in regulated markets.
Concentration
The concentration in finance includes principles and concepts of Macroeconomics and Microeconomics, Financial and Managerial Accounting, and Legal Environment of Business or Business law, or equivalent studies. Problem solving in finance uses quantitative methods, including statistical analysis and often calculus.
The finance function consists of a set of activities involving; assessing, analyzing, and finding the appropriate financial resources needed for businesses [profit or not-for-profit] and/or individuals to successfully carryon operational and investment strategies. These activities are impacted by several environmental drivers that shape its implementation (e.g. political, economic, legal, informational, and social elements), and utilize various quantitative analytical methodologies. Students must comprehend the tools and techniques used in evaluating the financial performance of a business. Accordingly, they would be able to recommend the appropriate course of action to obtain the needed financial resources (e.g., Corporate Finance or Financial Management). Building on this, students explore financial instruments, investment valuation, and risk management (e.g.., Investment Management or Security Analysis and Portfolio Management).
Due to the complex nature of the financial market, it is crucial to understand its dynamics, structure, and regulation relevant to transfer of funds between entities. (e.g. Money and Banking or Financial Markets and Institutions).
Trades, economics and financial activities of government and business organizations (conglomerate or small business) are conducted on a global scale. It is extremely important to understand the international financial market laws, derivatives, and regulations that impact the exchange of financial instruments among countries and techniques used to hedge financial risk (e.g. International Finance).
Financial modeling software and electronic spreadsheets are used in “real world” simulations and require using advanced quantitative skills and methodologies (e.g. Econometrics or Quantitative Methods for Management or Business Analytics).
Career Paths
There are various career opportunities in finance. Among them are:
- Working within a corporate financial structure.
- Theoretical analyzer of finance.
- Financial professions as an investment banker or trader.
- Public finance professional.
- Wealth management advisor.
For students wishing to study finance as a path to corporate management, many of the studies in the management or business administration concentrations (such as accounting, strategic management and leadership) are also appropriate. Other students may wish to focus more on the theory of finance and would find additional studies in economics, corporate finance, portfolio theory and research methods appropriate. Those interested in pursuing a “Wall Street” path, may consider international accounting, federal income taxes, financial risk analysis, data analytics, and symbolic logic, or equivalent studies.
Students pursuing Finance Concentration under Business Management and Economics must satisfy these Area of Study Guidelines: Business, Management and Economics Guidelines for Students Matriculated Effective Jan. 1, 2004.
Students who are interested in Certified Financial Planner professional may consult with the CFP Board
Students who are interested in Chartered Financial Analyst may consult with the CFA Institute