Finance is a broad program of study designed to provide a descriptive, behavioral, and analytical background of financial management to enable students to qualify for opportunities in financial services, insurance, brokerage, government, real estate, and financial management of business enterprises. Finance is also an excellent area for those who wish to become more knowledgeable as consumers, particularly in the fields of investments, insurance, and real estate.
Areas of study in the field of finance include corporate financial management, investments, portfolio management, insurance, real estate, banking, and risk management. Upper-level courses include a review of contemporary literature in the field, case studies, and financial problem analysis integrating finance courses previously taken.
Undergraduate Major in Finance
For undergraduate curriculum in business, major in finance.
The Department of Finance offers a major in finance. Students will complete the general education requirements (including business foundation courses), supporting courses/major prerequisites, business core requirements for the bachelor of science (B.S.) degree, and 21 additional credits in the major.
The instructional objective of the Finance program is to provide a well-rounded professional education in finance. Such an education should provide the student with:
- a mastery of basic financial concepts and methods of analysis
- an understanding of financial operations in a global setting and of the role of financial institutions in the economy
- an ability to effectively communicate and work with others as the finance member of a team
- an ability to demonstrate leadership capabilities in financial analysis and portfolio management.
Students are limited to three business majors/degrees within the Ivy College of Business, or a total of three business majors/minors within the college. This limit is on business majors/degrees/minors only, and does not apply to multiple majors/degrees/minors taken outside the Ivy College of Business.
For more information on the undergraduate major in Finance, please visit: https://ivybusiness.iastate.edu/undergraduate/majors-minors/finance/
Undergraduate Minor in Finance
The Department of Finance also offers a finance minor for non-finance majors in the Ivy College of Business. The minor requires 15 credits from an approved list of courses, including at least 6 credits in courses numbered 300 or above taken at Iowa State University with a grade of C or higher. The minor must include at least 9 credits that are not used to meet any other department, college, or university requirement. Students with declared majors have priority over students with declared minors in courses with space constraints.
| Required Course (3 credits): | ||
| FIN 301 | Principles of Finance | 3 |
| Elective Courses (12 credits): | ||
| Select twelve credit hours from 300 or 400 level Finance courses | ||
Students are limited to three business majors/degrees within the Ivy College of Business, or a total of three business majors/minors within the college. This limit is on business majors/degrees/minors only, and does not apply to multiple majors/degrees/minors taken outside the Ivy College of Business.
For more information on the undergraduate minor in Finance, please visit: https://ivybusiness.iastate.edu/undergraduate/majors-minors/
Curriculum:
In addition to the basic business requirements, finance majors must also complete:
| Required Courses (6 credits): | ||
| FIN 310 | Corporate Finance * | 3 |
| FIN 320 | Investments | 3 |
| Elective Courses (12 credits): | ||
| Select four courses from the following (at least two must be 400-level): | ||
| FIN 327 | Fixed Income Securities | 3 |
| FIN 330 | Financial Markets and Institutions | 3 |
| FIN 361 | Personal Risk Management and Insurance | 3 |
| FIN 371 | Real Estate Principles | 3 |
| FIN 415 | Business Financing Decisions | 3 |
| FIN 424 | Financial Futures and Options | 3 |
| FIN 425 | Security Analysis and Portfolio Management | 3 |
| FIN 428 | Advanced Fixed Income Analysis and Portfolio Management | 3 |
| FIN 431 | Small Business Finance Decisions | 3 |
| FIN 435 | Venture Capital, Private Equity, and Mergers and Acquisitions | 3 |
| FIN 445 | Bank Management Decisions | 3 |
| FIN 450 | Analytical Methods in Finance | 3 |
| FIN 455X | Predictive Analytics in Finance | 3 |
| FIN 456X | Financial Modeling | 3 |
| FIN 462 | Corporate Risk Management and Insurance | 3 |
| FIN 464 | Risk Management Derivatives | 3 |
| FIN 472 | Real Estate Finance | 3 |
| FIN 474 | Real Estate Investment | 3 |
| FIN 480 | International Finance | 3 |
| FIN 491 | International Study Course in Global Capital Markets | 3 |
| Additional Elective Courses (3 credits): | ||
| Select one course from the following: | ||
| ACCT 383 | Intermediate Managerial Accounting | 3 |
| ACCT 386 | Intermediate Accounting I | 3 |
| ACCT 387 | Intermediate Accounting II | 3 |
| or any additional 400+ level Finance course. | ||
Total Credits: 21
| * | STAT 326 Introduction to Business Statistics II is highly recommended to be taken as a prerequisite. |
NOTE: Finance majors must take STAT 326 Introduction to Business Statistics II as part of the supporting courses.
The X designation after a course number indicates this is an experimental course offered by the Department. Although in an experimental phase, these courses are open for registration just the same as permanent courses listed in the course catalog and count as elective choices in the major.
Finance, B.S.
Sample 4-Year Plan (Your plan may differ)
| Freshman | |||
|---|---|---|---|
| Fall | Credits | Spring | Credits |
| BUSAD 102 or 103 | 1 | ECON 102 | 3 |
| ECON 101 | 3 | STAT 226 | 3 |
| COM S 113 | 3 | SP CM 212 | 3 |
| ENGL 150 | 3 | ACCT 284 | 3 |
| MATH 150 | 3 | BUSAD 203 | 1 |
| LIB 160 | 1 | HUM/SOC SCI | 3 |
| 14 | 16 | ||
| Sophomore | |||
| Fall | Credits | Spring | Credits |
| ACCT 285 | 3 | PHIL 230 | 3 |
| FIN 301 | 3 | HUM/SOC SCI | 3 |
| ENGL 250 | 3 | Global/International Perspective@ | 3 |
| Natural Science | 3 | Core Business Course | 3 |
| MATH 151 | 3 | STAT 326 | 3 |
| 15 | 15 | ||
| Junior | |||
| Fall | Credits | Spring | Credits |
| ACCT 215 | 3 | FIN 320 | 3 |
| FIN 310 | 3 | FIN Electives | 6 |
| Core Business Courses | 6 | Core Business Course | 3 |
| US Diversity# | 3 | HUM/SOC SCI | 3 |
| 15 | 15 | ||
| Senior | |||
| Fall | Credits | Spring | Credits |
| FIN Electives | 6 | FIN Elective | 3 |
| ENGL 302 | 3 | MGMT 478* | 3 |
| Core Business Courses | 6 | Global/International Perspective@ | 3 |
| General Elective | 2 | General Electives | 6 |
| 17 | 15 | ||
| Total Credits: 122 | |||
| @ | Courses in these requirements may also be used as Global Perspective. |
| # | US Diversity courses may be used to satisfy HUM/SOC SCI. |
| * | All core classes must be completed prior to taking MGMT 478 in the graduating semester. |
Students must be admitted to the professional program in business to major in finance. The requirements to enter the professional program are:
1. Completion of at least 30 credits, Foundation Courses, ENGL 150, and all ENGL 101/99 courses if required.
2. A minimum GPA of 2.50 either cumulative or in the Foundation Courses. Early admission is allowed for Honors-eligible students. (See your advisor for specific information)
Graduation Requirements:
1. Grade of “C” or higher in at least 30 credits of Core and Major courses.
2. 42 credits of 300+ level courses from a four-year institution.
3. 50% of required Business courses must be earned at ISU.
4. At least 32 credits and the LAST 32 credits must be earned at ISU (exceptions for study abroad and internship may be requested).
5. 122 Credits minimum and a Cumulative GPA of at least 2.00 with no quality point deficiencies.
6. A grade of C or better in ENGL 250 required, and also in one other required ENGL course.
7. All 300-level and higher business credits must be earned at a four-year college.
8. Multiple business majors must have at least 15 distinct credits in each of the major requirements; when applicable, one course can be shared between business majors; see your advisor regarding multiple business degree requirements.
Graduate Study
The Finance Department offers a Master of Finance (MFIN) degree. The MFIN is a non-thesis, non-creative component curriculum designed to provide students with in-depth coverage of finance topics and a strong quantitative skill set. Students will learn financial analysis and valuation, advanced regression techniques and programming approaches for data analysis, time series analysis and forecasting, optimization techniques, modelling of financial and risk variables, simulation techniques, and tools for effective risk management. The 30 credit program requires 18 core credits. Another 12 credits of electives are required, six of which must be in finance courses.
For more information about the MFIN program, please visit: https://ivybusiness.iastate.edu/masters/mfin/
The Finance Department also offers a Master of Real Estate Development (MRED) degree. Jointly created with the College of Design, and with significant input and engagement from industry leaders, the MRED is a 30-credit non-thesis, non-creative component program. The MRED program offers academic training, networking opportunities and collaboration with leading academics and practitioners to solve real world problems. Areas of study include real estate market analysis, finance, investments, leadership and negotiation, fundamentals of the build environment, construction science and urban planning. The curriculum is offered in a convenient format of distance learning and brief campus residencies, making it ideal for the full-time working professional.
For more information about the MRED program, please visit: https://ivybusiness.iastate.edu/masters/mred/
The Department of Finance also participates in the full-time and part-time Master of Business Administration (MBA) program as well as the PhD in Business and Technology program. The MBA is a 48-credit, non-thesis, non-creative component curriculum. Thirty of the 48 credits are core courses and the remaining 18 are graduate electives. Within the MBA program, students may develop an area of specialization in Finance.
For more information about the MBA program with a specialization in Finance, please visit: https://ivybusiness.iastate.edu/masters/mba/
The PhD in Business and Technology with a Finance (FIN) specialization is a 56-credit (minimum) curriculum designed to train students to teach at the university level, to do research that is publishable in top academic journals, and to analyze questions that are important to government agencies and the private sector. Successful students develop close working relationships with the ISU finance faculty, both in the classroom and on co-authored research. We strive for our students to publish their first research study before finishing the program, and to obtain jobs at research-oriented universities in the U.S. and abroad. We emphasize rigorous training and hands-on experience. Five semesters of coursework include a firm grounding in economic theory, thorough training in statistics and econometrics, and an immersion in the most important research studies in corporate finance, investments, and financial institutions.
For more information about the PhD program with a specialization in Finance, please visit: https://ivybusiness.iastate.edu/phd/
Graduate Certificate
The graduate certificate in finance provides training in investment valuation and the skills necessary to value an entire company through analysis of expected cash flows based on financial statements, growth characteristics, and risk.
The certificate is for graduate students and recent graduates seeking job opportunities as investors or professional money managers, who deal with efficient asset allocation in a portfolio setting, investment performance measurement, and performance evaluation. The certificate is available on campus in Ames.
For more information about the graduate certificate in Finance, please visit: https://ivybusiness.iastate.edu/masters/graduate-certificates/
Courses
Courses primarily for undergraduates:
(3-0) Cr. 3. F.S.SS.
Prereq: FIN 301; and co-requisite of MATH 151 or MATH 160 or MATH 165
Introduction to securities and markets from the viewpoint of the individual investor. Emphasis on mechanics of trading, measurement of return and risk, behavior of security prices, valuation of stocks and bonds, mutual funds, portfolio selection techniques, and performance evaluation.
(3-0) Cr. 3.
Prereq: FIN 301
Valuation of fixed income securities, including pricing conventions, term structure of interest rates, default, duration, and hedging of interest rate risk with derivatives. Analysis of bond market sectors, including treasury, agency, corporate, sovereign, municipal, and residential mortgage bonds.
(3-0) Cr. 3. F.S.
Prereq: FIN 301
Introduction to the structure and operations of the United States financial system and its markets and institutions. Emphasis on developing an integrated understanding of markets and financial service providers including global linkages.
(3-0) Cr. 3. F.S.
Prereq: FIN 301
Risk concepts and the use of insurance by individuals and families. Emphasis on the insurance mechanism and methods of dealing with income, property, and liability risks.
(3-0) Cr. 3. SS.
Prereq: ECON 101
Legal, economic, social and financial aspects of real estate, including property rights, contracts, mortgage instruments, tax factors, brokerage, valuation, risk and return analysis, financing techniques, and investments.
(3-0) Cr. 3.
Prereq: FIN 310
In depth study of the firm's external financing decision. Emphasis on the development of cash flow statements, projected financing needs and the selection of the appropriate financing instrument. Focus on case studies and application of developed techniques on actual field project.
(3-0) Cr. 3.
Prereq: FIN 320 and STAT 326
Advanced study of pricing and using derivatives - instruments deriving value from fundamental items such as commodities, currency exchange rates, market indices, equities and bonds. Addresses basic building blocks of derivatives (i.e., forwards, futures, options and swaps) and relevant current topics and issues.
(3-0) Cr. 3. F.S.
Prereq: FIN 320, STAT 326
Advanced study of security analysis, security selection techniques and portfolio management. Emphasis on the applications of methods learned via the selection and evaluation of a portfolio of actual securities purchased in securities markets in the U.S. or abroad. Tracking and periodic reporting of the portfolio's performance relative to standard benchmarks is also required.
Cr. 3.
Prereq: FIN 320
Valuation of fixed income securities, including pricing conventions, term structure of interest rates, default, duration, and hedging of interest rate risk with derivatives. Analysis of bond market sectors, including treasury, agency, corporate, sovereign, municipal, and residential mortgage bonds.
(Dual-listed with FIN 528). (3-0) Cr. 3.
Prereq: FIN 427
Advanced analysis of fixed income markets and securities, including valuation and trading of treasury securities, corporate bonds, mortgage backed securities. Analysis of structured financial securities, including CDO, CMBS, and ABS. Analysis of active and passive investment strategies for managing fixed income portfolios. Students are required to manage a fixed income portfolio for an institutional investor. A top-down approach to portfolio management is assumed, with active bets taken on market direction, duration, yield curve, and credit spreads.
(Cross-listed with ENTSP). Cr. 3. S.
Prereq: FIN 310 or ENTSP 313 AND FIN 301
Integrative nature of small business financial decisions, from basic historical financial analysis to financial projections and valuation unique to small business. Utilize planning/valuation to reconcile the optimal exit date for the small business owner. Examination of this integrative approach through case study. Emphasis on practical application with a decision orientation. Group project working with a small business owner and related advisors/bankers to develop a plan that focuses on an optimal exit strategy.
(3-0) Cr. 3. S.
Prereq: FIN 310, FIN 320, STAT 326
An advanced investments class that focuses on alternative investments. Topics include techniques for valuing public and private firms, venture capital finance, investment banking, private equity finance, leveraged buyouts, hedge funds, the structure and financing of mergers and acquisitions, and divestitures.
Cr. 3. F.S.
Prereq: STAT 326, and ECON 301 or FIN 301
Applied empirical methods commonly employed in the analysis of firm and market data. Specific applications to financial and agricultural markets. Experiential learning experience using lectures with frequent in-class computer work sessions. Experience with financial and agricultural data sources. Application and interpretation of empirical techniques.
(3-0) Cr. 3. F.
Prereq: FIN 310
Analysis of an organization's approaches to the management of price, credit, and pure risk. Emphasis on the consideration and selection of risk control and financing treatments and the decision making framework underlying the alternatives selected. Covers commercial insurance, self-insurance, and alternative financing arrangements.
(3-0) Cr. 3.
Prereq: FIN 424
Advanced models for options and bond pricing. Geometric Brownian motion, risk-neutral pricing, no-arbitrage pricing models, exotic options, pricing options through simulation, and applications of derivatives to hedging market and credit risk exposure. Risk management tools and how they are applied within financial institutions such as banks, insurance companies, mutual funds, and hedge funds, as well as the corporate enterprise. Topics include the Basel accords, volatility modelling, value-at-risk analysis, extreme value theory, credit default swaps, and portfolio simulation.
(3-0) Cr. 3. F.S.
Prereq: FIN 371 or FIN 427; AND STAT 326
Introduction to theories and methods of investment analysis applied to real estate. Studies cash flow analysis, alternative measures of investment performance, the impact of the financing decision on real estate investment risks and return, and various real estate financing techniques. Covers cases involving more complex financing and capital markets tools used in real estate.
(3-0) Cr. 3. F.S.
Prereq: FIN 310, FIN 320 or FIN 330
Advanced study of currency market equilibrium, use and analysis of currency derivatives, hedging currency risk, and additional topics, which could include multinational capital budgeting, taxation, raising capital internationally, international portfolio diversification, international capital market equilibrium, political and country risk, financing international trade, multinational corporate treasury management, and current issues.
Cr. 3. S.
Prereq: FIN 301
European capital markets and multinational corporate finance with focus on banking, capital markets, and corporate finance in a particular European country. Exposure to European capital markets, the European Monetary Union and the banking system. Current and historical banking practices within the EU and how they changed since the EMU implementation. Understand financial decisions faced by firms located in the EU. Study banks, institutions, and companies in Europe to gain specific knowledge of their practices. Learn about the culture and general economy of Europe during the in country visit.
Courses primarily for graduate students, open to qualified undergraduates:
(3-0) Cr. 3.
Prereq: Enrollment in MBA program or departmental permission.
Shareholder wealth maximization as the goal of the firm within a social responsibility context, financial Math, valuation of securities, the global financial market place as the test of value, estimation of cost of capital, global capital investment decisions, capital structure policy, working capital management.
(3-0) Cr. 3.
Prereq: FIN 501 or instructor permission
Examines corporate financial decisions, including theory and associated empirical evidence. Topics include agency conflicts, corporate governance, executive compensation, becoming publicly traded, raising capital through public and private offerings, capital structure, financial distress and bankruptcy, leasing, dividend policy, corporate control, restructuring, and risk management.
(3-0) Cr. 3.
Prereq: FIN 501 or instructor permission
This course focuses on case studies to develop an integrated set of financial decisions. Topic areas include fixed asset, working capital, capital structure, dividend and merger/acquisition decisions. The objective of the course is to examine different firm settings and establish a framework within which to apply financial tools.
(3-0) Cr. 3.
Prereq: FIN 501 or instructor permission
Analysis of risk and return for individual securities and portfolios of securities. Topics include the market environment, mechanics of trading, measurement of return and risk, valuation of stocks and bonds, mutual funds, optimal asset allocation, market efficiency, portfolio performance evaluation, and risk management.
(Dual-listed with FIN 428). (3-0) Cr. 3.
Prereq: FIN 427
Advanced analysis of fixed income markets and securities, including valuation and trading of treasury securities, corporate bonds, mortgage backed securities. Analysis of structured financial securities, including CDO, CMBS, and ABS. Analysis of active and passive investment strategies for managing fixed income portfolios. Students are required to manage a fixed income portfolio for an institutional investor. A top-down approach to portfolio management is assumed, with active bets taken on market direction, duration, yield curve, and credit spreads.
(3-0) Cr. 3.
Prereq: FIN 501 or instructor permission
Valuation of public and private firms through analysis of financial statements and other information. Study of drivers of value creation, industry analysis, patterns of growth, models for forecasting and analyzing firm cash flows, estimating and adjusting cost of capital, alternative methods of cash flow valuation, the calculation and use of valuation multiples, and valuing mergers and acquisitions.
(3-0) Cr. 3. F.
Prereq: FIN 501 or Graduate classification
An applied course in derivative markets. Topics covered include futures and options markets, option pricing, swaps, use and rating of insurance products, and alternative forms of reinsurance. Emphasis will be placed on agricultural commodity markets, but energy, interest, currency and stock index contracts will also be covered.
(3-0) Cr. 3.
Prereq: FIN 501 or instructor permission
Advanced investments class focusing on alternative investments. Topics include the nature and scope of investment banking, techniques for valuing public and private firms, venture capital finance, private equity finance, leveraged buyouts, hedge funds, the structure and financing of mergers and acquisitions, and divestitures.
(Cross-listed with MIS). Cr. 3. S.
Prereq: BUSAD 502 or an advanced undergraduate statistics course recommended
Introduction to Business Analytics (BA) in finance and the insurance industry. The concepts and tools discussed in this course, to be followed and complemented by more advanced courses in the area. Basic analytical thinking and business acumen focusing on applications from finance and insurance. Practical data analytic skills based on building real analytic applications on real data.
(3-0) Cr. 3.
Prereq: FIN 501, ECON 571
Analysis, modeling, and forecasting of time series data, volatility modeling and forecasting, maximum likelihood estimation, robust standard error computation, specification testing, estimation under alternative distributional assumptions, and Monte Carlo simulation. Applications include tests of asset pricing models, analysis of asset volatility, corporate event studies, and value at risk analysis.
(3-0) Cr. 3.
Prereq: FIN 501, FIN 534
Risk management tools and how they are applied within financial institutions and the corporate enterprise. Focus on measuring exposure to stock market risk, interest rate risk, currency risk, and credit risk and how these exposures may be managed. Topics include bank risk management regulations, volatility modeling, value at risk analysis, extreme value theory, credit default swaps, and portfolio simulation.
(3-0) Cr. 3.
Prereq: Master of Real Estate Development students only or instructor permission
Survey of techniques for assessing the value of real estate assets. Introduction to real estate financing instruments, their use and appropriateness.
(3-0) Cr. 3.
Prereq: FIN 501; enrollment in the MRED or instructor permission.
Introduction to theories and methods of investment analysis applied to real estate. Designed as second course in the sequence of real estate finance and investments. Basics of income-producing properties, the valuations of those properties using pro-forma, risk management and various other issues about the finance and investment of income-producing properties. Study of analysis of sustainable real estate development from capital budgeting perspective. Discussion of the financing practices in real estate and land development.
(3-0) Cr. 3.
Prereq: Enrollment in the MRED or instructor permission.
Mechanics, incentives and importance of securitization in firms' efforts to raise capital with application to residential and commercial real estate. Design and implementation of portfolio management strategies of private-market real estate investments. Additional topics include devising alpha strategies, approaches to diversification, creating investment plans to achieve different risk profiles and peformance measurement and analysis.
(3-0) Cr. 3.
Prereq: Enrollment in the MRED or instructor permission.
Introduction to the structure of real estate markets. Topics include determinants of supply and demand in space and capital markets, house price dynamics and causes and consequences of market cycles. Discussion of likely behavior of U.S. real estate markets and comparisons with markets in other countries.
(Cross-listed with C R P). (3-0) Cr. 3.
Prereq: Enrollment in MRED.
Refinement of students' problem-solving, communication and negotiation skills. Students work on an actual case. Teams will apply knowledge acquired in the classroom to some aspect of a current development on-the-ground and in-process project.
Cr. 1-3. Repeatable. F.S.SS.
Prereq: Permission of instructor
For students wishing to do individual research in a particular area of finance.