FINANCE
WHAT IS FINANCE?
Finance is the study of how to create and maintain wealth. It is the art of administering and managing money that is crucial to the success of every business. Although you learn and use many calculations, financial management is really concerned with the logic behind the calculations. For instance, finance deals with the factors that determine interest rates and the effects of those rates on future earnings. It assesses the valuation and characteristics of stocks and bonds and how to evaluate a firm's financial performance. It examines the functions and purposes of monetary systems, credit, prices, money markets, and financial institutions.
WHAT COURSES DO YOU NEED TO TAKE?
Many universities and colleges require a core curriculum of liberal arts, science, and math designed to increase overall knowledge. Generally, business schools require additional core courses. Many institutions offer an emphasis in finance as part of a business degree; minors in this subject also are available at some universities. The following courses usually are required for a finance emphasis in addition to finance courses in the business core
- Corporate Financial Decisions
- Financial Markets and Institutions
- International Financial Management
- Investment and Portfolio Management
Accounting courses also are recommended.
WHAT CAN YOU DO WITH A DEGREE IN FINANCE?
There are four basic career areas in finance:
- Banking
- Consumer Credit
- Corporate Finance
- Securities
In the banking sector, positions for finance majors include commercial loan officer, consumer bank officer, trust administrator, and bank manager. There are opportunities with the Federal Reserve Bank as examiners and operations analysts. In the consumer credit area, jobs related to installment loans, sales, and mortgage credit are available, as well as consumer credit counselors and credit officers and managers.
In corporate finance, the chief financial officer is at the top of the ladder. Other positions include treasurer, controller, pension fund manager, financial analyst, or financial public relations. Securities sales and trading, as well as financial planning and underwriting, need finance majors. The SEC hires people with finance degrees as investigators.
Becoming a CPA or earning an MBA can help to secure a job in some of these fields. There is also a growing availability of positions in international finance.