Introduction to Finance

Finance is part of our everyday lives. This results in a plethora of financial decisions that we all make or will make at some point in time. Yet many tend to take the discipline and practice of finance lightly. This elementary course clarifies the difference between several related yet different fields of study.

You will not only learn the meaning of Finance but also the basic terminology used in this field. You will understand why it is important for everyone to have a basic understanding of finance and its underlying principles. You will look at various sub-fields and branches of finance. After completing this course, you will gain a stronger foundation of the financial world. This course is designed to help students with very little or no finance background to learn the basics and create a broad mental framework that will help in further structured study of various topics.

After completing this course, you will be able to:

• Understand how finance is different yet intertwined with economics and accounting.
• Describe the meaning of finance, money and currency.
• Explain why everyone should study finance irrespective of work and skill set.
• Enumerate the sub-fields of finance and describe how each one is different from others.
• Describe various branches of finance.
• Enumerate what career choices lay ahead of somebody deeply interested in finance.
• Understand the major important terms used in the finance industry.
• State various financial decisions made by a business or a professional.
• Understand various sources and applications of funds in a business.
• State the difference between capital market and money market.
• Describe various capital market instruments.
• Recognize the importance of stock market and debt/ bond market for an economy.
• State the difference between equity and debt as well as the steps involved in fund raising.
• Describe the meaning of risk, types of risks and risk aversion.
• Explain the practice of diversification and its impact on various types of risk.
• Understand the meaning of efficient portfolio, risk-free asset and risk-free rate.
• Derive the appropriate return expected from a capital asset using CAPM.
• Describe the meaning of CML, efficient frontier and beta.
• Estimating excess return expected from capital asset for its given level of non-diversifiable risk.

Eligibility – Anyone who has passed 10+2 or an equivalent exam or is currently pursuing undergraduate studies in any field.

Pre-requisites – No specific pre-requisites required for this course.

Suitability

This course is most suitable for: –

• Students from any background and discipline
• Working professionals with very little knowledge of finance
• Budding entrepreneurs needing a quick refresher
• Fresh graduates from any branch or stream
• Anyone with no knowledge of but keen interest in finance

This is a free course. As a result, no payment is required.