Texas A&M University Undergraduate Catalog

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Course Descriptions

Department of Finance

Professors K. E. Back, D. W. Blackwell, S. K. Cooper, D. R. Fraser, J. C. Groth, R. L. Haney, Jr., S. A. Johnson, J. W. Kolari, D. S. Lee, A. Mahajan; Associate Professors E.  Boehmer (Interim Head), L. P. Fields, S. M. Sorescu; Assistant Professors S. Chava, M. F. Gallmeyer, N. E. Galpin, R. G. Petkova; Clinical Professors J. E. Gaspar, L. C. Wolken; Clinical Associate Professors J. A. Adkisson, R. T. Dye, T. O. Jackson; Clinical Assistant Professor D. R. Hallermann Executive Professors C. C. Donnell; Senior Lecturers O. E. Elmore, S. C. Guyton, L. R. Martindale; Lecturer P. K. Drysdale

Finance
(FINC)

201. (BUSI 1307) Personal Finance. (3-0). Credit 3. I, II, S

Financial management problems of the individual consumer; budgeting, insurance, saving and investing, and home financing. May not be used as a finance elective.

267. Introduction to Securities and Commodities Trading. (1-0). Credit 1.

Introduction to financial markets and the instruments that trade in them; describes how financial markets operate; compare and contrast a wide variety of common financial instruments, including debt, equity, derivatives and commodities; basic functions of real-world data sources (especially Bloomberg and the Wall Street Journal); and career paths in the field of finance. Prerequisite: Freshman or sophomore classification in business.

341. Business Finance. (3-0). Credit 3. I, II, S

Financial practices and financial management of modern business corporations; cash flow, planning, procurement of funds, management of long-term funds and working capital. Prerequisites: Admission to upper division in Mays Business School.

371. Real Estate Decision-Making. (3-0). Credit 3. I, II, S

Legal, physical and economic characteristics of real estate; overview of real estate market analysis, real estate valuation procedures and real estate production, marketing and financing methods. Prerequisites: Admission to upper division in Mays Business School.

409. Survey of Finance Principles. (3-0). Credit 3. I, II, S

Finance survey for non-business majors; financial markets, the investment banking process, interest rates, financial intermediaries and the banking system, financial instruments, time value of money concepts, and security valuation and selection. May not be used to satisfy degree requirements for majors in business. Prerequisites: ACCT 209 or 229; junior classification; for students other than business and agribusiness.

421. Investment Analysis. (3-0). Credit 3. I, II, S

Operation and functions of the organized security exchanges, fundamental security analysis and technical market analysis. Prerequisite: FINC 341 with a grade of C or better.

422. Applied Investment Analysis. (3-0). Credit 3. I, II

Theoretical and analytical developments in security selection and portfolio management; includes macroeconomic analysis, portfolio theory, and portfolio performance evaluation; concepts applied to the allocation of investments in a student-managed equity portfolio. Prerequisite: Approval of instructor; FINC 421.

423. Options and Financial Futures. (3-0). Credit 3. I, II

Valuation of options and financial futures; risk management and hedging applications using options and financial futures; primary focus on stock options, index options, stock index futures, interest rate futures, foreign exchange futures and futures options. Prerequisite: FINC 421.

424. Trading Risk Management. (3-0). Credit 3.

Mid-office risk management strategies using the energy markets as a focus; develops understanding of commodity market behavior, use of forwards and options for risk management, risk management reporting, Greeks and simulation-based VaR analysis. Prerequisite: FINC 421.

425. Portfolio Management. (3-0). Credit 3.

Overview of the investment industry and the portfolio management process; includes indices and benchmarks, portfolio structuring, stock vs. sector selection, performance measurement, and attribution analysis, investment products and distribution, and current issues affecting the investment industry. Prerequisites: FINC 421.

426. Trading Markets. (3-0). Credit 3.

Issues related to securities trading and securities markets; why and how people trade; the operation, structure and regulation of securities markets; focus on equity markets; comparisons to the markets for derivatives and other securities. Prerequisites: FINC 421.

427. Titans of Investing. (3-0). Credit 3.

Readings from the most influential theorists and practitioners of 20th and 21st century investing; case studies and portfolio sector exercises in an institutional context, based on detailed assessment of global investment risks. Prerequisites: Junior or senior classification; approval of instructor; FINC 421.

434. Managerial Finance I. (3-0). Credit 3. I, II, S

Managerial problems of financial managers; financial analysis, current asset management, capital budgeting and capital structure. Prerequisite: FINC 341 with a grade of C or better.

435. Managerial Finance II. (3-0). Credit 3. II, S

Case studies in the administration of the financial affairs of business enterprises; working capital management, capital budgeting, capital structure, and mergers and acquisitions. Prerequisite: FINC 434.

445. Funding International Business. (3-0). Credit 3. I, II

International business transactions, balance of payments and exchange rate systems, exchange rate risk and hedging techniques, sources of funding, relation to international financial institutions and capital instruments; relates international business funding to national and commercial development. Prerequisite: FINC 341 with a grade of C or better. Cross-listed with IBUS446.

447. Financial Statement Analysis. (3-0). Credit 3. I, II

Development of an analytical approach to financial statements, integrating relevant finance and accounting concepts and principles; current topics in financial analysis. Prerequisites: FINC 341 with a grade of C or better; ACCT 315 or 327. Cross-listed with ACCT 447.

460. Money and Capital Markets. (3-0). Credit 3. I, II, S

Role of finance and financial institutions in the money and capital markets in the U.S. including supply of and demand for funds, interest rates and flow of funds analysis. Prerequisite: FINC 341 with a grade of C or better.

462. Commercial Bank Management. (3-0). Credit 3. I, II

Problems confronting commercial banks: development and application of credit standards, decisions on loan applications, liquidity management and profit sensitivity to varying levels of interest rates. Prerequisite: FINC 460.

466. Wall Street, Investment Banking and the Financial Markets. (3-0). Credit 3. S

Enables students to experience, first-hand, the major financial markets of the United States; visits to major Wall Street firms, security and commodity exchanges, and other financial institutions. Prerequisites: Admission to upper division in Mays Business School and approval of instructor.

467. Commodity Trade Strategy. (3-0). Credit 3.

Front office trading strategies using the energy market as a focus; comprehending and evaluating price behavior in energy markets; derivation of price and risk strategies. Prerequisites: FINC 423.

472. Real Estate Finance. (3-0). Credit 3. II

Real estate financing instruments, institutions and techniques; trust deed financing, mortgage underwriting and risk analysis, primary and secondary mortgage markets and institutions. Prerequisite: FINC 371.

473. Real Estate Appraisal. (3-0). Credit 3. I

Impact of socio-economic forces on urban real estate values; cost, sales comparison and capitalized income approaches to market value; demonstration appraisal. Prerequisite: FINC 371.

475. Real Estate Investment Analysis. (3-0). Credit 3. I

Real estate market analysis, equity investor decision criteria, institutional investment constraints and investment valuation; case analysis of specific real estate investment decisions. Prerequisite: FINC 341 with a grade of C or better.

478. Real Estate Law. (3-0). Credit 3. I, II

Laws and regulations affecting real estate ownership and use; estates and interests in land, legal descriptions, deeds, security devices for real estate creditors, earnest money contracts, leases, public and private land use controls and mineral and water rights. May not be used as a finance elective. Prerequisite: FINC 371 or approval of instructor.

484. Professional Internship. Credit 1 to 6. I, II, S

Professional internship with practicing professionals under the direction of a faculty member. Available for free elective only and must be taken on a satisfactory/unsatisfactory basis. Prerequisites: Finance major and approval of instructor and department head.

485. Directed Studies. Credit 1 to 3 each semester. I, II, S

Directed study on selected problems in the area of finance not covered in other courses. Prerequisites: Finance major and senior classification; approval of department head.

489. Special Topics in... Credit 1 to 4. I, II, S

Selected area in finance. May include attention to aspects of real estate finance, corporate financial management, investments, or financial institutions and markets. Prerequisite: Admission to upper division in Mays Business School and approval of instructor.