1. The Four Basic Areas of Finance
Investments
Financial Institutions
International Finance
Corporate Finance
Introduction – Fin301

2. Investment What kinds of investment tools we have?
How to issue new securities?
Security Markets
Listing and listing requirements
NYSE is a dealer market or an auction market?
What do Investment banks do?
Goldman Sachs, Merrill Lynch, JPMorgan, Lehman Brother, Saloman Smith Barney, Morgan Stanley
Investment banking: Underwrites IPOs, SEOs, places private equity ...
Brokage Service: execute security transaction, offers M&A advisory services ...
Introduction – Fin301

3. Financial Institutions
Commercial Banks
Savings institutions
credit unions
mutual funds
insurance companies
pension funds
Introduction – Fin301

4. International Finance
Foreign Exchange Risk
Political Risk
Terms like LIBOR, EURO, Eurodollar
What would be the impact on Japanese products if Yen Strengthens against Dollar?
Introduction – Fin301

5. Corporate Finance
Introduction – Fin301

6. Organization Chart
Introduction – Fin301

7. Corporate Objective???
Introduction – Fin301

8. Financial Managers’ Decisions
Investment Decisions
Financing Decision
Capital Budgeting
Capital Structure
Working Capital
Risk Management
Introduction – Fin301

9. To Maximize shareholders’ wealth, managers should learn / know
Calculate cash flow
timing of cash flow
risk of cash flow
tax treatment of cash flow
financing of investment
options to undertake future actions
Introduction – Fin301

10. The Agency Problem The agency relationship Agency Costs
How do agency costs affect firm value
Any problem other than the agency problem?
Introduction – Fin301