The Financial Services Industry

Catalog description

The financial services industry touches all of our lives and has been going through a continuous transformation since the deregulation that began in the early 1970's. That evolution has accelerated in recent years as more and more pressure has been brought to bear by various stakeholders in the industry who have divergent goals and agendas. Those invested stakeholders include clients, investors, employees, regulators/politicians and the public at large. Overlaying all of this change has been rapid technological advancement that has had a direct impact on how the industry delivers its services, meets expected equity returns and manages the risk inherent in that delivery. This Course is an Advanced Finance Elective where THINKING not MEMORIZING is what it is all about. This course is a survey course. It provides a broad overview of the financial services industry and of the forces that are continuing to change it worldwide. That change/evolution has resulted in a confederation of sometimes integrated products and services within a multi-product firm. It has also resulted in individual stand-alone businesses within those same integrated financial firms, or in boutique, stand-alone, limited product firms. The course focuses on four big questions: (1) Why and what kind of services are provided by participants in the industry? (2) Who develops, provides and regulates those services? (3) How are they likely to be executed or modified in the future? (4) What skills (both technical and ""soft"") are required for an individual to succeed in the industry? Our approach will be to examine each of the principal businesses in which various financial service firms have been involved, including: raising capital; financial advisory; broker/dealer positions; sales and trading; proprietary investing; managing the assets of others (both institutions and individuals) and risk management.…