Finance School of management FINANCE Zvi Bodie Robert c. merton uesTc
1 Finance School of Management FINANCE Zvi Bodie Robert C. Merton
Finance School of management 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 uesTc
2 Finance School of Management ❖ 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
Finance School of management Chapter 1 What is Finance? Objective To Define finance The value of finance ● Introduction to the players uesTc
3 Finance School of Management Chapter 1: What is Finance? Objective • To Define Finance • The Value of Finance • Introduction to the Players
Finance School of management Chapter I Contents Defining Finance The goal of management Why study Finance Market Discipline Household finance Takeovers Financial Decisions-Firms Role of the Financial Forms of business S pecialists in a Organization Corporation Separation of Ownership and management uesTc
4 Finance School of Management Chapter 1 Contents ❖ Defining Finance ❖ Why Study Finance ❖ Household Finance ❖ Financial Decisions-Firms ❖ Forms of Business Organization ❖ Separation of Ownership and Management ❖ The Goal of management ❖ Market DisciplineTakeovers ❖ Role of the Financial Specialists in a Corporation
Finance School of management Defining Finance e. What do you know about 'Finance? uesTc
5 Finance School of Management Defining Finance ❖What do you know about ‘Finance’?
Finance School of management Defining Finance Finance as a scientific discipline is the study of how people allocatescarce resources over time under conditions of uncertainty. uesTc
6 Finance School of Management Defining Finance ❖ Finance, as a scientific discipline, is the study of how people allocate scarce resources over time under conditions of uncertainty
Finance School of management Analytical "Pillars to Finance .Optimization over time asset valuation Risk management uesTc
7 Finance School of Management Analytical “Pillars” to Finance ❖ Optimization over time ❖ Asset valuation ❖ Risk management
Finance School of management Finance Theory consists of a set of concepts that help to organize one's hinking about how to allocate resources over time a set of quantitative models to help one evaluate alternatives, make decisions and implement them uesTc
8 Finance School of Management Finance Theory ❖ consists of – a set of concepts that help to organize 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
Finance School of management 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 uesTc
9 Finance School of Management 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
Finance School of management Why Study Finance? To manage your personal resources To deal with the world of business To pursue interesting and rewarding career opportunities .s To make informed public choices as a citizen s To expand your mind uesTc 10
10 Finance School of Management 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
