Feb. 1, 1993 — AOS Guidelines: Business, Management and Economics

Finance is the study of the direct and indirect transfer of funds from those who save to those who invest. It includes both the financial instruments which are bought and sold and the markets in which they are traded.

The study of finance builds upon a foundation of economic concepts. It applies those concepts to information that comes from a solid foundation in accounting theory, and it uses concepts from statistics to deal with the uncertainty inherent in forecasting the future. Much of the problem solving in finance uses algebra. Electronic spreadsheets are used in "real-world" simulations. Advanced quantitative skills are desirable.

The concentration typically will include:

•  One or more studies which focus on the firm as the generator of financial instruments and on the valuation of those instruments.
•  One or more studies which focus on the investor as the purchaser of financial instruments.
•  One or more studies of financial markets, both domestic and international.

These studies form the core of a concentration in finance.

Related Career Directions

•  Finance within a corporate financial structure or as a personal financial consultant/advisor: studies in risk management, interview techniques, the psychology of interpersonal relations and communication skills.
•  Finance in corporate management: studies in management or business administration concentrations.

Theory of Finance

Students who wish to focus more on the theory of finance would find studies appropriate in:

•     Economics.
•     Corporate finance.
•     Portfolio theory.
•     Securities analysis.
•     International finance.
•     Money and banking.
•     Research methods.