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LinkedIn Learning

Finance Foundations

via LinkedIn Learning

Overview

Get a basic introduction to the world of finance, from analyzing risk and return and obtaining financing to understanding how markets and banks operate.

Finance exists in the real world. It impacts everyone: individuals, families, companies, and governments. While it may sound complicated, at its core finance is about deciding what to buy, getting the money you need to buy it, and efficiently managing the resources you already own. In this course, Brigham Young University business professors Jim and Kay Stice provide a comprehensive overview of finance, touching on everything from reading a balance sheet to understanding derivatives and securities. They tackle questions such as "What is the difference between short-term financial management and long-term financing?" and "What is the difference between a traditional bank, an investment bank, and an investment fund?" Along the way, you can get an inside look at financial reports from companies such as Walmart and Toys "R" Us, the IPOs of Microsoft and Facebook, and even the data that go into personal financial decisions, such as deciding whether to buy a car.

Syllabus

Introduction
  • The essence of finance
  • What you should know
1. What Is Finance?
  • The board of directors discuss finance
  • Finance inside of companies
  • Finance outside of companies
2. Understanding Financial Statements
  • Introducing financial statements
  • Overview of financial statements
  • The balance sheet
  • The income statement
  • The statement of cash flows
  • Common ratios: Debt and current ratios
  • Common ratios: Return on sales, asset turnover, and ROE
  • Common ratios: Price-earnings ratio
  • Forecasting financial statements
3. Short-Term Financial Management
  • Short-term financial management
  • The operating cycle
  • Cash management
  • Managing receivables and inventory
  • Obtaining short-term financing
  • Understanding internal controls
4. Risk and Return
  • Introducing risk and return
  • What is risk?
  • Why we don’t like risk
  • Reducing risk through diversification
  • Beta: The concept
  • Beta: Examples
  • Risk-free rate
  • Equity risk premium
  • Capital asset pricing model (CAPM)
5. Obtaining Long-Term Financing
  • Introducing long-term financing
  • Does capital structure matter?
  • Factors influencing optimal capital structure
  • Cost of capital: All debt or all equity financing
  • Cost of capital: Split debt-equity financing
  • Weighted-average cost of capital
6. Understanding Securities Markets
  • Introducing securities markets
  • The difference between a stock and a bond
  • Stock markets
  • Bond markets
  • Publicly traded shares: What impacts the share price?
  • Initial public offering (IPO): Microsoft
  • Can you pick stocks in the stock market?
7. Financial Institutions
  • Introducing financial institutions
  • Traditional banks
  • Investment banks
  • Investment funds: Index funds
  • Investment funds: Managed funds, private equity funds, and hedge funds
  • Insurance companies
8. Capital Budgeting
  • Introducing capital budgeting
  • Capital budgeting overview
  • The time value of money
  • Example: Buying a car in Hong Kong
9. Personal Financial Planning
  • Introducing personal financial planning
  • The secret to financial security
  • The importance of personal budgeting
  • Simple savings and investment plans
Conclusion
  • Reviewing corporate finance

Taught by

Jim Stice and Kay Stice

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