Finance is the study of the allocation of
financial (scarce) resources to maximize
their utilities. Since the allocation is subject
to uncertainties, tools and skills are
employed to weigh the costs and benefits
of the decisions.
If you were to start your business, what type of questions do you need to ask yourself? What products to produce or sell? What kind of buildings, furniture, machines to buy? How to finance (to get the money)? Should I borrow or take partners? How to manage daily activities, to collect from customers and pay suppliers?
These are some of the most important questions you need to answer and they are related to the management of money.
Career opportunities for those who have studied finance are divided into four related areas: corporate finance, investment, money and capital markets, and international finance. Corporate finance: Financial managers deal with plant expansions, securities issuing, and decision on credit terms. Positions will be at banks, other financial institutions, industrial and retail firms, hospitals, schools, and governments. Investments: Finance graduates who go into investments usually work for a brokerage firm (security analyst), bank, mutual fund, insurance company (portfolio management), consulting firm, pension fund, or investment bank. Money and Capital Markets: Graduates in this area work for financial institutions including banks, insurance firms, mutual funds, or investment banks (valuation, regulatory environments, people skills) International Finance: At this time of accelerating globalization, the graduates who focus on international finance, when equipped with foreign language proficiency, will be offered very attractive positions with multinational corporations, foreign financial institutions, foreign and international organizations such as the IMF, World Bank, and UN. The goal of finance will continue to be value maximization and two emerging trends will become increasingly important: the globalization of business (security analyst) and the use of information technology.