文档介绍：FINANCE
Zvi Bodie
Robert C. Merton
About my name
About my TA
About the course
About the requirements
20% assignment & class performance
15% mid-term test
65% final test
About the book and authors
Chapter 1: What is Finance?
Objective
To Define Finance
The Value of Finance
Introduction to
the Players
Chapter 1 Contents
Defining Finance
Why Study Finance
Household Finance
Financial Decisions-Firms
Forms of anization
Separation of Ownership and Management
The Goal of management
Market Discipline-Takeovers
Role of the Financial Specialists in a Corporation
Defining Finance
What do you know about ‘Finance’?
Defining Finance
Finance, as a scientific discipline, is the study of how people allocate scarce resources over time under conditions of uncertainty.
Analytical “Pillars” to Finance
Optimization over time
Asset valuation
Risk management
Finance Theory
consists of
a set of concepts that help anize one’s thinking about how to allocate resources over time
a set of quantitative models to help one evaluate alternatives, make decisions, and implement them
Financial System
The financial system is defined as the set of markets and other institutions used for financial contracting and the exchange of assets and risks.
The ultimate function of the system is to satisfy people’s consumption preferences.
Why Study Finance?
To manage your personal resources
To deal with the world of business
To pursue interesting and rewarding career opportunities
To make informed public choices as a citizen
To expand your mind