Fundamentals of Finance

This subject has the following teaching availabilities in 2016:

144 hours per semester, including self-directed study/research

Not available to students who are enrolled in, or who have previously completed, FNCE90060 Financial Management, FNCE90018 Corporate Financial Policy or FNCE90056 Investment Management

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This subject introduces students to the fundamentals of finance, financial securities and financial markets. Topics include: key financial concepts such as the time-value-of-money, risk, return, present value, diversification, arbitrage, leverage and voting control; key financial securities such as stocks, bonds, mortgages and other loans; key financial markets such as the stock, interest rate and foreign exchange markets; and key participants in financial markets such as investors, funds, companies, banks, intermediaries, governments and regulators.

This subject is designed for students who seek an understanding of financial concepts and markets, but who do not intend to pursue any further studies in finance.

On successful completion of this subject students should be able to:

• Explain the nature and role of different financial markets
• Describe and distinguish the key features of different financial securities and participants
• Apply key financial concepts to value financial securities and products
• Explain the role of risk and return in financial decision making
• Reflect on the content of current news in the financial press.

• One 2000 word individual assignment, due in weeks 7 to 9 (30%)
• One 3-hour end-of-semester examination (70%)

Details willl be provided by the end of 2015.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication
• Written communication
• Problem solving
• Team work
• Critical thinking
• Evaluation of data and other information.