During MGT 768 Financial and Capital Issues, you’ll develop essential skills to make smart financial and capital decisions for your firm. Focus is on the ability to identify financial and capital issues that offer opportunity, as well as recognizing potential threats. You’ll gain the capacity to utilize financial business knowledge in an ethical manner when making these decisions. The hands-on approach provides the necessary insight into the role of financial and capital issues in the strategic aspects of firm management. Further demonstration of the acquisition of the required abilities occurs through analysis and preparation of case studies, exposure to current literature in the field, and a financial analysis of a publicly traded company.
Coursework is designed for analysis of trends and application of skills. Here are examples of some assignments you may complete as part of MGT 768 Financial and Capital Issues.
- A project to create, manage, and explain the process of building your diversified portfolio that proves your ability to select the proper assets that will reduce half of the risk of investing.
- Write an investor strategy research paper that illustrates what techniques you’ve learned in the process of selecting stocks and reducing risks.
- Complete a financial analysis of your selected public company that you have followed for the duration of the course.
Each week of this course focuses on a different theme. Your group discussions and coursework will align with the week’s theme as well as its primary objectives. All weekly course material is proposed and subject to change.
Week 1 – Introduction to Money and the Financial System, Future Values, Present Values, and Understanding Risk
During the introduction week, you’ll:
- Get an overview of money and its function in the financial system.
- Take a historical reflection on the 2007-2009 financial crisis.
- Explore how to act and position your financial assets before the next financial crisis.
- Receive the tools to analyze merits of an investment and calculate the expected return.
- Determine ways to reduce risk with proper diversification.
Week 2 – Bond Valuation and Risks of Interest Rates
In week two, you’ll sharpen your focus so you can:
- Understand and value bonds.
- Use valuation method on stocks to affect reducing risk.
- Discern valuation approach for bonds with varying maturities.
- Apply the concept of consols (bond that is held to maturity).
- Benefit from fluctuating long term interest rates.
Week 3 – Basics of Stocks, Market Exchanges, and Derivatives
Throughout week three, you’ll learn how to:
- Select, value, and measure the performance of a stock portfolio.
- Research stocks, stock markets, and market efficiency.
- Understand the basics of stocks and market exchanges.
- Explore derivatives like futures, options, and swaps.
- Comprehend the uses and abuses of derivatives.
Week 4 – Foreign Exchanges and "Real" Exchange Rates
During the midpoint week of the course, you’ll separate financial fantasy from reality so you can:
- Be introduced to foreign exchange and financial intermediation.
- Understand foreign exchanges and the basics of how they work.
- Explain foreign exchange rates using the Big Mac Index, movement of the dollar against the Euro and Pound, and what "real" exchange rates are.
- Review examples of the economics of financial intermediation (including the infamous Bernie Madoff scandal).
Week 5 – Causes of a Liquidity Crisis (2007-2009)
As you progress to week five, you’ll shift to understanding a pending financial crisis by the following:
- Focus on the attributes of the financial industry and its depository institutions.
- Take stock in lessons learned (like Bank of America).
- Understand banks (depository institutions), bank management, risks, and competition.
- Discover what bank assets consist of (liabilities and bank capital), and items they have to loan out to people.
- Explore pension funds, security firms, finance companies, and government-sponsored enterprises.
Week 6 – The Effects of Regulating the Financial System
In week six, you’ll examine many new topics and terms, so you’ll be able to:
- Understand the needs to regulate the financial system.
- Discuss established safety nets for the protection of the financial system.
- Know what is in place right now to minimize certain financial risks.
- Discuss terms like shadow bank, contagion, lender of last resort, and CAMELS.
- Explore the government involvement in every part of the financial system.
Week 7 – The Roles and Successes of Central Banks
Throughout this week, you’ll learn to:
- Provide an overview of central banks and how they function in the world today.
- Explain exchange-rate policies and impacts on the global financial market stability.
- Further explain the objectives and characteristics of central banks, and effect of “fiscal policy.”
- Understand exchange-rates between countries and setting them to be fixed or floating.
- Discuss risks and rewards of a fixed exchange rate.
Week 8 – Money Policy and the Effects on Inflation
During the last week, you’ll finish applying several financial and capital issues you’ve learned, so you can continue to:
- Provide an introduction to modern monetary economics.
- Understand the "velocity of money."
- Explore the Euro-Area M3.
- Review the strong positive correlation between money growth and inflation.