Finance, Insurance, and Business Law
Head: Vijay Singal
Suntrust Professor of Finance: G.E. Morgan
Suntrust Professor of Banking: J.M. Pinkerton
J. Gray Ferguson Professor of Finance: V. Singal
Alumni Distinguished Professor and R. B. Pamplin Professor of Finance: A.J. Keown
R. B. Pamplin Professor of Finance: G.B. Kadlec
R.V. and A.F. Oliver Professor of Investment Management: R. Kumar
R.E. Sorensen Professor: J. Hiller
Wells Fargo Professor in Financial Risk Management: S. Mansi
Professors: D.M. Patterson
Emeritus Professors: D. Shome and G.R. Thompson
Associate Professors: R.S. Billingsley, V.A. Bonomo, J.C. Easterwood, and U. Lel
Assistant Professors: D. Anginer, A. MacKinlay, B. Pay, T. Wang, and J. Xu
Professor of Practice: M. Kender
Associate Professor of Practice: D. Klock and C. Spicer
Assistant Professor of Practice: J. Malone
Visiting Assistant Professors: P. Ye
Instructors: B. Hart, K. Hogan, E. Johnsen, M. Jones, W. Newton, J. Showalter, and K. Sullivan
Web: www.finance.pamplin.vt.edu
E-mail: fin@vt.edu
Overview
Finance is a specialty that works with the development, allocation and use of monetary resources within established legal and ethical frameworks, while understanding and mitigating the associated risks. Money is a critical component of the economic system and its flow is the sustaining force of the U.S. and global economy. Therefore, in working with how governments, corporations, intermediaries, and households utilize their financial assets finance professionals are an integral part of how the economy perpetuates the standard of living that we enjoy.
Traditionally there are three separate but related fields within finance: 1) corporate financial management or "business finance" which focuses on the internal decisions of companies to raise funds and invest in corporate assets; 2) investment management which focuses on the purchase and sale of stocks and bonds or their derivatives by individuals and institutions; and 3) financial services management, which focuses on the management and regulation of institutions and the role that financial institutions play in the economy.
The undergraduate program in Finance meets the requirements of students who desire specialized careers in financial management. Students gain expertise in both accounting and finance, essential for success as a financial professional. The case-oriented focus of coursework requires students to apply their knowledge and strengthen their oral and written communication skills. The department offers specializations in (i) Corporate Financial Management, (ii) Investment Management and CFA© (Chartered Financial Analyst), based on the CFA© curriculum as recognized and approved by the CFA Institute, (iii) Banking and Financial Institutions Management, (iv) Financial Accounting, and (v) CFP© Certification Education with approval of CFP Board of Standards. Students also have the opportunity to participate in student management funds focused on investments in bonds (BASIS) and in stocks (SEED).
The curriculum offers courses in finance, insurance, and business law, but a major only in finance.
Degree Requirements
The graduation requirements in effect at the time of graduation apply. When choosing the degree requirements information, always choose the year of your expected date of graduation. Requirements for graduation are referred to via university publications as "Checksheets". The number of credit hours required for degree completion varies among curricula. Students must satisfactorily complete all requirements and university obligations for degree completion.
The university reserves the right to modify requirements in a degree program. However, the university will not alter degree requirements less than two years from the expected graduation year unless there is a transition plan for students already in the degree program.
Please visit the University Registrar website at http://www.registrar.vt.edu/graduation/checksheets/index.html for degree requirements.
Students select different combinations of elective courses to fulfill the requirements of one or more of the six options offered. The six options are: (i) Corporate Financial Management, (ii) Investment Management and CFA© (Chartered Financial Analyst), (iii) Banking and Financial Institutions Management, (iv) Financial Accounting, and (v) CFP© Certification Education with approval of CFP Board of Standards
Undergraduate Course Descriptions (FIN)
2104 (AAEC 2104): PERSONAL FINANCIAL PLANNING
Survey of fundamental personal financial planning needs
and decisions of young professionals. Introduction to the
personal financial planning needs that special household
circumstances or non-traditional household situations may
precipitate.
(3H,3C)
2114: INVESTMENTS & FINANCIAL LITERACY
Examines the investment process; the financial markets;
investing in common stock, bonds, and mutual funds;
budgeting; long- and short-term borrowing; credit card debt;
student loan debt; insurance; major financial decisions, and
retirement planning. Coverage of time value of money and
risk and return to provide fundamental tools for valuation
and financial decision-making.
(3H,3C)
2164: SURVEY OF FINANCE AND CAREER PLANNING
Career opportunities and job search strategies in the
finance field with reference to the finance courses that
best help the student identify a career in his/her
selected field. Pass/Fail only.
Pass/Fail only.
(1H,1C)
2954: BUSINESS STUDY ABROAD
This course provides students with an international business
experience. It is only offered as part of a program outside
of the United States. Students will learn from the
structured educational experience developed by the
faculty leader. Pre: Instructor's consent and the
completion of 30 SH with a minimum GPA of 3.0 or
departmental consent.
Variable credit course.
2974: INDEPENDENT STUDY
Variable credit course.
2984: SPECIAL STUDY
Variable credit course.
3054: LEGAL AND ETHICAL ENVIRONMENT OF BUSINESS
Key concepts of law, ethics, and regulation applicable to
business operations and management; includes international
aspects. Legal and ethical decision-making, critical
applications, and relationship of business to society. Legal
systems, torts, contracts, property, administrative law
topics, agency, ethical frameworks. Pre: Junior Standing.
(3H,3C)
3074: LEGAL, ETHICAL, AND FINANCING ISSUES FOR ENTREPRENEURS
Introduction of key legal, ethical, and financing topics for
new ventures. Ethical decision making in entrepreneurial
situations. Choosing among legal entities for financing
and ownership goals. Company governance. Creating and
protecting intellectual property. Identifying and choosing
financing options for new ventures. Employment issues for
entrepreneurial firms. Basics of contracts. Enterprise risk
management and compliance. Exit strategies. Partially
duplicates FIN 3054 (Legal and Ethical Environment of
Business). Students may not receive credit for both
courses. Junior Standing.
(3H,3C)
3104: INTRODUCTION TO FINANCE
Overview of financial decision-making process focusing on
the creation of wealth. Topics covered include the time
value of money, how stocks and bonds are valued, financial
decision-making within a firm, an overview of financial
markets, and investment banking. The course is designed for
finance and non-finance majors.
Pre: ACIS 2115, (BIT 2405 or STAT 3005 or STAT 3604 or STAT 4604 or STAT 4705 or STAT
4714) or (STAT 3615, STAT 3616), (ECON 2005 or ECON 2025H).
(3H,3C)
3134: FINANCIAL ANALYTICS
This course provides an understanding of the theory and
practice of making financial decisions for corporations. Key
concepts and computational skills in finance. Time value of
money, risk and return, security valuation and interest rate
determination.
Pre: (ECON 2005 or ECON 2025H), ACIS 2115, (BIT 2405 or STAT 3005 or STAT 3604 or STA
T 4604 or STAT 4705 or STAT 4714 or STAT 3615, STAT 3616).
Co: ACIS 2504.
(3H,3C)
3144: INVESTMENTS: DEBT, EQUITY AND DERIVATIVES
Risk, return and portfolio theory, knowledge of financial
securities and markets. Introduction to mutual funds,
financial securities and markets, portfolio analysis, market
efficiency and performance evaluation, bond valuation, term
structure of interest rates, interest rate risk, security
analysis and stock valuation, options, Black-Scholes option
pricing model, and futures. Must have a grade of C or
better in prerequisite of FIN 3134, and Junior standing
required.
Pre: 3134.
(3H,3C)
3154: CORPORATE FINANCE
Types of financial management decisions that firms make, the
environment in which decisions are made, the available
choices and decision criteria, and valuation consequences of
these choices. Determination of a firm's optimal debt-
equity ratio, estimation of cost of capital, evaluation of
capital investments, divided policy, and sources of
financing. Must have a grade of C or better in
prerequisite of FIN 3134, and Junior standing
required.
Pre: 3134.
(3H,3C)
3174: FINANCE CAREER STRATEGIES
Analysis and research of career opportunities in financial
industry. Study of future trends in careers in financial
industry. Development of short and long-term career goals.
Building and developing a professional network. Identify
types of finance interviews. Ethical negotiation of job
offers.
(1H,1C)
3204: RISK AND INSURANCE
Surveys the concept of risk as it applies to the nuclear
family and as a socio-economic force in society. Risk
management techniques utilizing social and proprietary
insurance to neutralize the effect of risks inherent in
daily life: termination or suspension of earnings,
liability exposures, and potential losses of real and
personal property values. Junior standing required.
(3H,3C)
3954: STUDY ABROAD
Variable credit course.
4004: WILLS, TRUSTS, AND ESTATES
Examines the control of assets through the creation and
use of trusts, and the control of property through estate
planning. The course emphasizes financial planning through
estate management both personally and as a part of a
business plan.
Pre: 3055 or 3054 or 3074.
(3H,3C)
4014: INTERNET, ELECTRONIC AND ONLINE LAW
Study of the international legal environment and regulation
of the electronic world, including electronic commerce,
computer and media communication issues, and speech over the
Internet. Webpage design, copyright, electronic payment,
electronic contract, encryption, and privacy are some issues
to be examined. Topics will be updated continually to
reflect the newest developments of the law as applied to the
electronic world of commerce. Pre: Junior/Senior standing
or consent of instructor.
(3H,3C)
4114 (AAEC 4114): FINANCIAL PLANNING TECHNOLOGY & MODELING
Use of professional software applications that support
financial planning analyses, plan preparation, wealth
management, and client relationships. Principles of
personal investment portfolio research, construction,
and performance applied to comprehensive financial
planning and wealth management.
Pre: AAEC 3104, FIN 3144.
(3H,3C)
4144: INTERNATIONAL FINANCIAL MANAGEMENT
Explores the environmental challenges facing the financial
manager of a multinational corporation and the tools and
techniques developed to meet such challenges.
Pre: 3104.
(3H,3C)
4154: REAL ESTATE FINANCE
This course introduces the fundamentals of both real estate
financing and investment. Conventional mortgages as well as
more creative financing methods will be analyzed. The
secondary market for mortgages and relevant institutional
factors also will be examined. Investment analysis of real
estate will be viewed in a capital budgeting framework;
appropriate tax law will be discussed as it affects real
estate cash flows.
Pre: 3134.
(3H,3C)
4214: ADVANCED PROPERTY & LIABILITY INSURANCE
Concepts of finance applied to the construction of models in
Excel. Construct models of financial statement to evaluate
financial strategies for a firm; design risk/return models
for investment portfolio strategies using equity and/or debt
securities; build models to optimize bond portfolios
including interest rate sensitivities, duration and
convexity; develop models to analyze and dynamically
hedge option and futures portfolios; assemble binomial tree
models on American options; build simulation models to
evaluate different types of options.
Pre: 3144.
(3H,3C)
4224: FIXED INCOME SECURITIES: ANALYSIS AND MANAGEMENT
Analysis of fixed income securities, including corporate
bonds, U.S. Treasury notes and bonds, municipal bonds, money
market securities, and home mortgages. The analysis include
interest rate risk, credit risk, bond valuation theory, and the valuation of embedded options in the bond contract. Theories of the term structure of interest rates are
presented. Must have a grade of C or better in
prerequisites of FIN 3144 and 3154.
Pre: 3144, 3154.
(3H,3C)
4225-4226: ANALYTICS FOR FIXED INCOME SECURITIES AND PORTFOLIO MANAGEMENT
4225: Management of fixed income securities in an
experiential setting. Bond pricing and investment.
Credit analysis and portfolio strategies in fixed
income. Introduction to advanced analytical techniques
in bond and portfolio analytics. Conduct research on
individual companies, industries, and countries. Membership
in BASIS (Bond And Securities Investing by Students). Must
have a B- or better in prereq. Pass/Fail Only.
Pass/Fail only.
Pre: 3134 for 4225; 4224, 4225 for 4226.
Co: 4224 for 4225.
(3H,3C)
4234: VENTURE CAPITAL AND INVESTMENT BANKING
Explores the venture capital cycles of fund-raising,
investing in portfolio firms, and exiting the investment.
Focuses on the role of investment banking in the exiting of
investments by taking the portfolio firms public through
initial public offerings. Includes a conceptual component
and an applied component in which the case method is used.
Must have a grade of C or better in prerequisites of
FIN 3144 and 3154.
Pre: 3144, 3154.
(3H,3C)
4244: ASSET VALUATION AND CORPORATE GOVERNANCE
The effect of corporate governance on asset-valuation. Case
oriented course focusing on the valuation of non-financial
assets such as projects, business units, private and public
firms. Topics include method of comparables, discounted
cash flow methods and the real options approach to
valuation. Examines the external and internal governance
mechanisms for preserving and enhancing the value of a firm.
Must have a grade of C or better in prerequisites of
FIN 3144 and 3154.
Pre: 3144, 3154.
(3H,3C)
4254: BANK MANAGEMENT AND FINANCIAL SERVICES
The functions of financial service providers and the risks
inherent in the provision of banking and other financial
services. Regulatory background and issues. Case oriented
course. Must have a grade of C or better in prerequisites
of FIN 3144 and 3154.
Pre: 3144, 3154.
(3H,3C)
4264: MANAGING RISK WITH DERIVATIVES
The types, payoff, and pricing of derivative securities and
contracts and their application in managing financial risks
faced by corporations. Topics include options, forwards,
futures and swaps; managing foreign currency risk, interest
rate risk, stock price risk, and commodity price risk; and
risk management techniques. Must have a grade of C or
better in prerequisites of FIN 3144 and 3154.
Pre: 3144, 3154.
(3H,3C)
4274: EQUITY SECURITIES: ANALYSIS AND MANAGEMENT
Advanced valuation and analysis of equity securities with
case applications. Critical analysis of advanced equity asset pricing models. Analysis of advanced equity portfolio management techniques, equity portfolio performance
measurement, and equity portfolio performance attribution
analysis. Identification and analysis of market anomalies
and recent developments in equity analysis. Must have grade
of C or better in prerequisites of FIN 3144 and 3154.
Pre: 3144, 3154.
(3H,3C)
4275-4276: ANALYTICS FOR EQUITY SECURITIES AND PORTFOLIO MANAGEMENT
Selection and management of equity securities in an
experimental setting. Analysis, selection, and investment
in common stocks. Introduction to advanced analytical
techniques in equity evaluation and portfolio analytics.
Research individual companies, industries, economic
sectors, and national and global macroeconomic trends.
Use appropriate software to develop financial models.
Present buy and sell recommendations for actual
execution in the portfolio. Maintain a high level of
fiduciary responsibility. Pass/Fail only. Membership in SEED
(Student-Managed Endowment for Educational
Development).
Pass/Fail only.
Pre: 3134 for 4275; 4274, 4275 for 4276.
Co: 4274 for 4275.
(3H,3C)
4284: FREE MARKETS, INDIVIDUAL FREEDOM, AND ECONOMIC WELFARE
Course exposes students to various viewpoints on the role
free markets can and do play in promoting individual
freedom. Allocation of scarce resources, and in enhancing
welfare. Explores the strengths and weaknesses of
capitalism by critically evaluating the relationship between
the economic efficiency achieved by capitalism and the
attainment of welfare objectives. Other topics include
current items such as globalization, price controls, income
equality, outsourcing, corporate pricing power though
monopoly/oligopoly, and government regulation of the
economy.
(3H,3C)
4954: STUDY ABROAD
Variable credit course.
4974: INDEPENDENT STUDY
Variable credit course.
4984: SPECIAL STUDY
Variable credit course.
4994: UNDERGRADUATE RESEARCH
Variable credit course.
4994H: UNDERGRADUATE RESEARCH
Variable credit course.