8. Why does the stock market move?
The route of an entrepreneur
Bright Idea Raise Funds Build Company
9. Why does the stock market move?
The decisions of an investor
Deposit in bank Invest in stocks
10. Why does the oil market move?
A futures contract
Payoff Diagram
$100
Step 1: Enter into a contract with someone at strike price $100
Step 2: 3 months from now, make money if oil price is above $100,
lose money if oil price is below $100
11. Activities in Finance
InvestmentFund Raising
Advisory Analysis
Risk Management
Portfolio
Management
Making Decisions
Coping with Risk and Uncertainty
12. Job Market in Singapore
• Singapore is actively involved in financial
markets operations
– Conduit and clearing for RMB between China and
region
– Stocks, REITs, Business Trusts and other funds
frameworks make for a vibrant market
13. Job Market in Singapore
• Educated workforce and stable economic and
political climate draw many foreign financial
institutions here. These and local banks scout
for local talents.
• Citizens are aware of importance of
investments. Financial planning and advisory
are major financial services.
15. Finance Major-Minor Programme
• Requirement: 200 credit units (CUs)
• Common Core – 40 CUs
• Major Courses (Compulsory) – 80 CUs
• Major Courses (Elective) – 20 CUs
• Minor Courses – 40 CUs
• Integrative Course – 10 CUs
• Applied Project – 10 CUs
16. Courses in Years 1 and 2
• Year 1
• Orientation and Team Building
• BUS100
• Common Core
– CCO101
– CCO103
– CCO105
– CCO107
– CCO201
– CCO203
• ACC201
• BUS105
• BUS201
• ECO201
• Year 2
• ACC203
• BUS204
• BUS206
• ECO203
• MKT202
• FIN201
– Financial Mathematics
• FIN305
– Financial Markets and Instruments
• FIN307
– Financial Institutions
• FIN309
– Finance
• FIN353
– Portfolio Management
• FIN365
– Financial Statement Analysis
• FIN Elective 1
17. Courses in Years 3 and 4
• Year 3
• 3 x FIN Electives
• 2 x Common Core Electives
• Work Attachment
– You will be placed on a 24-week
attachment to a company in the finance
industry to perform like a regular
employee and will be mentored by staff
members from the company and
UniSIM
• Overseas Experience
– You will find yourself situated in a
different socio-cultural context in which
you will hone your people and
communication skills
• Year 4
• 8 x Minor
• BUS488 (10 CUs)
– Strategy
• FIN 488 (10 CUs)
– Finance Applied Project
• This course enables senior
undergraduate students to conduct a
research-based project on topics related
to finance and report their finding and
recommendations. The course requires
students to put together knowledge
domains from various courses in the
programme to provide useful
information to make decisions. Students
have to work closely with their
supervisors to craft out a suitable
project topic and carry out the project
individually.
18. Electives (20 CUs)
• FIN351: Corporate Finance
• FIN355: Equity Securities
• FIN357: Fixed Income Securities
• FIN359: Derivative Securities
• FIN367: Alternative Investments
• FIN369: Financial Risk Management
• FIN371: Retirement Planning
• FIN373: Tax and Estate Planning
• FIN375: Risk Management and Insurance Planning
• FIN377: Financial Plan Construction
Courses that follow
CFA requirements
Courses that follow
CFP requirements
20. Selecting Courses and “Tracks”
• Several well-known industry programs that offer exams
and professional affiliation
– Chartered Financial Analyst (CFA)
• CFA program is an industry professional certification that
comprises 3 levels of exams. The finance courses at UniSIM
prepare you for the Level I and Level II exams.
– Certified Financial Planner (CFP)
• CFP is a industry professional designation for financial planning.
Successful designation requires sitting for the exams of 6 modules
(listed Modules 1-6). The 5 courses FIN371/373/375/377 and
COR167e give you exemption to Modules 1-5.
• Find out more. Talk to people. Plan ahead.
21. Challenge Exams
• This also
applies to
courses that
you take in
your Minor
• Information
may be found
at: UniSIM
Home Page >
Admissions >
Challenge
Examination
22. Course Assessments
• Pre-class quiz
• Class participation
• Individual assignments
• Group-based assignments
• Final exam / project
• At UniSIM
– a course lasts 6 weeks
– preparatory learning materials are put online
– face-to-face sessions are for
• us to see each other
• you to think about and apply the concepts that you’ve read online
• the class to learn together
– Consequence: You need to prepare early
Overview of finance industry
Centre = Finance industry
Pentagon = Financial Institutions and players
Outer = Roles
The markets are alive
Change happens all the time, sometimes very quickly
Impacts world events as they unfold
In turn affect prices
This is picture of S&P 500 index – it never stays still
This is a picture of WTI oil futures price.
It’s even more volatile than the stock index.
The investor decides between putting money in the bank or buying shares in companies, thereby helping the entrepreneur to raise his funds.
The oil futures market moves because traders trade futures contracts.
The futures price fluctuates at all times as futures are actively traded.
It is against this backdrop you find the roles, jobs and activities in the finance industry.
Fund raising – for new venture
Investment – for better yield, for security
Advisory – to advise on the appropriate investment, to advise on M&A, to advise on listing, etc.
Analysis – watch and describe the market as it moves, make short term forecasts
Portfolio management – manages funds of investors by trading baskets of stocks – don’t put all your eggs in one basket principle
Risk management – monitor risk level in banks
CFA – chartered financial analyst
CFP – certified financial planner
Communication
Human Resource Management
Information Technology
Psychology
Sociology
Supply Chain Management
These – only with good reason.
Find out about your inclination.
Investment analysis and financial analysis of stocks, bonds and derivatives – CFA
Risk management - PRMIA
Financial planning (personal finance, education, retirement, investment, insurance planning) - CFP
