This course is an introduction to security and portfolio analysis. Students will be actively engaged in the management of monies recieved from Nebraska Wesleyan alumni and friends of the University. The monies are part of Nebraska Wesleyan's Endowment. Students will gain a fundamental understanding of portfolio management theories and their application by money managers in the market place. Emphasis is placed on gaining a better understanding and application of investment theories and concepts, and portfolio management including, but not limited to, economic, industry and company analysis, and the allocation of the NWU SIG's Fund assets. Performance is based upon total returns which are tracked by the University's consultants for the management of endowment funds. The Student Investment Group evaluates securities for sale on a regular basis and may sell securities as the SIG concludes is most appropriate. Decisions for the purchase of securities must be presented to a committee per Nebraska Wesleyan's SIG Guidelines which are part of the Board of Governor's Investment Policy Statement. Each spring semester an annual newsletter is created regarding the SIG's activities and performance. This newsletter is used for several purposes including reporting to the Financial Committee of the Board of Governors whom is ultimately responsible for the portfolio. No P/F.
Prerequisite(s): BUSAD 3700 Financial Management or permission of the instructor.
Students are introduced to financial management of proprietorships, partnerships, and corporations. Concepts of risk and return, time value of money, and stock and bond valuation are analyzed from a quantitative approach and applied throughout the course. Additional topics covered are the cost of capital as related to discounted cash flow, capital budgeting, and strategic financing decisions. A project consisting of several spreadsheet applications will be utilized in order to expose students to their potential for financial analysis. Topics covered include: basic financial statements, financial ratio analysis, time value of money, valuation and rates of return, the cost of capital, and capital budgeting.
Prerequisite(s): Junior standing and grades of "C-" or better in ECON 1530 Macroeconomic Principles, ACCT 1320 Principles of Accounting II and MATH 1100 College Algebra or higher, or permission of the instructor.
(Normally offered each semester.)