Why Study Finance?
Corporate life:
How does a firm finance its operations?
How can a firm use financial techniques to improve decision
making (strategy, portfolio planning, manufacturing, etc.)
Personal life:
How should you invest your money?
What this course provides:
a framework to understand the role of finance
an understanding of key concepts in finance
an introduction to financial instruments
exposure to financial techniques

Functions of a Financial System
Provide an efficient payment system for the
exchange of goods and services.
Provide mechanisms that allow for the transfer of
economic resources
Life-cycle allocations (consumption vs. saving)
Efficient allocation (specialization)
Pool funds to undertake large-scale projects
Manage uncertainty (allocate risk-bearing)