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Majoring in Finance

All You Should Know About Majoring in Finance

Around the world, many universities offer courses in Finance. The main goal of a course in Finance is to give the student a platform to be able to pursue a career in business. Finance students study complex mathematics and finance theories and principles in order to be able to implement them in the world of business. Finance students more often than not end up dropping out or failing some of the units taught in Finance classes due to their complexity.

The major takeaway for finance students is the knowledge of financial market prediction because the main role of a finance career is to eventually help society with investment plans. Let us go through the branches and subdivisions of a course in Finance.

1. Futures and Options

Finance majors study the principle of futures and options in stock exchange trading. Futures and options are contracts between a seller and a buyer of shares. The difference between them is that an option would give a trader the right, but not the obligation to buy or sell the shares at a specific price at any time for as long as the contract s in effect. A future, on the other hand, allows a trader to purchase and then sell the shares on a specific future date.

2. Financial Modelling

Financial modelling is simply building an abstract representation of a financial situation in the real world. Finance students study financial modelling to enable them to be able to forecast the financial performance of an asset, an investment, or a business.

3. Capital Markets

Capital markets are simply avenues where investments are traded between suppliers who have capital and business people who are in need of capital. Economists and financiers predict and facilitate the trade of these bonds and securities. Handling capital markets requires in-depth knowledge of finance.

4. International Finance

International Finance study is a branch of finance that is only concerned with the monetary interactions between two or more countries. The study involves foreign direct investment, loans and grants, and currency exchange rates. International Finance is a major branch of macroeconomics.

5. Mergers and Acquisitions

Students of Finance also study the processes of the consolidation of companies or assets through various kinds of financial transactions. The financial transactions include acquisition; where one company takes over another company and establishes itself as the new owner, mergers; where two firms decide to combine and form one company, and tender offer; where an organization purchases all the outstanding stock of another company.

6. Corporate Structure

This is the study of how corporations are organized in their small business units to accomplish their objectives. Corporate structure, also known as organizational structure, is basically concerned with ownership, control, and authority of an organization. The three entities are represented through shareholders, a board of directors, and company officers who manage the day to day operations of the company.

In Summary

Finance is the study of mathematical principles and theories that determine the monetary systems of organizations and countries. There are 6 major branches that a Finance student can choose from; corporate structure, mergers and acquisitions, International Finance, capital markets, futures and options, and financial modelling.

Majoring in Finance is a good option for any student because it prepares you for a lucrative business career with organizations like banks, government agencies, stockholders, and many more. Not only are the job opportunities for a Finance major many, but they are heavily rewarding too. Having known all this, do not wait, start your Finance student journey today.