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Introduction to
Finance
Freshman Finance Majors
Professor Cody Tehan
Introductory Film on financial basics
https://www.youtube.com/watch?v=RsdOkaJ7v5Q
Definitions and financial term definitions
What is Finance?
Definition
Finance is the study of how to make good decisions that
involve money. Such as what assets to buy, how to pay for
those assets, and how much cash to keep on hand.
Areas of finance
Can you name three of the five areas of finance?
Answer
1. Corporate Finance
2. Personal Finance
3. Investments and Portfolio Management
4. Financial markets and institutions
5. Public Finance
Lesson 1.2 - Goals of the Firm
https://www.youtube.com/watch?v=auoKKGVKqMQ&nohtml5=False
Potential Goals of a Firm
What are some of the potential goals of a firm or company?
Answer
1. Maximizing shareholder value
2. Maximising market share
3. High quality products and services
4. Maximizing income
How a firm sets reasonable and profitable goals
Why can’t a company provide more of everything?
Answer
Because of limited resources and tradeoffs associated with
adding products and services. The right amount enables a
firm’s benefits>costs.
Difficutlies of Value Maximization
Why is value maximization difficult for a firm or
company?
Answer
-Value is not directly observable
- Oftentimes forecasted financial statements are susceptible to human
hrror because they are estimated.
-Also, the market value of a firm is a “noisy” estimate
SmartBoard Link
http://exchange.smarttech.com/details.html?id=3e8f94f2-137f-40fa-92d6-
782974b641b8
-I utilized this SmartBoard because I liked the feature of utilizing flash card decks
to challenge what the students have learned from the video, lecture, and
discussion. In addition, this technique will keep students engaged and active
during class time.

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Edp 279 4.1 assignment

Editor's Notes

  1. This slide will help students hear about financial terms from a reputable source. In addition, students will need to be engaged because I will ask students randomly in the class to provide a definition/answer to the following slides.
  2. This is the second introductory lesson that will go into more detail of financial firms and companies. Once again, I would provide a video for the class and ask relatable questions and have a class discussion.