Finance School of management Defining Finance Finance as a scientific discipline is the study of how people allocatescarce resources over time under conditions of uncertainty. uesTc
6 Finance School of Management Defining Finance ❖ Finance, as a scientific discipline, is the study of how people allocate scarce resources over time under conditions of uncertainty
Finance School of management Analytical "Pillars to Finance .Optimization over time asset valuation Risk management uesTc
7 Finance School of Management Analytical “Pillars” to Finance ❖ Optimization over time ❖ Asset valuation ❖ Risk management
Finance School of management Finance Theory consists of a set of concepts that help to organize one's hinking about how to allocate resources over time a set of quantitative models to help one evaluate alternatives, make decisions and implement them uesTc
8 Finance School of Management Finance Theory ❖ consists of – a set of concepts that help to organize one’s thinking about how to allocate resources over time – a set of quantitative models to help one evaluate alternatives, make decisions, and implement them
Finance School of management Financial System The financial system is defined as the set of markets and other institutions used for financial contracting and the exchange of assets and risks The ultimate function of the system is to satisfy people's consumption preferences uesTc
9 Finance School of Management Financial System ❖ The financial system is defined as the set of markets and other institutions used for financial contracting and the exchange of assets and risks. ❖ The ultimate function of the system is to satisfy people’s consumption preferences
Finance School of management Why Study Finance? To manage your personal resources To deal with the world of business To pursue interesting and rewarding career opportunities .s To make informed public choices as a citizen s To expand your mind uesTc 10
10 Finance School of Management Why Study Finance? ❖ To manage your personal resources ❖ To deal with the world of business ❖ To pursue interesting and rewarding career opportunities ❖ To make informed public choices as a citizen ❖ To expand your mind