Major in Finance
The major in Finance requires the completion of 24 credits (8 courses). These include two required courses (6 credits) and 18 additional 400-level elective credits offered by the Department.
Flowchart of the FINA major courses
Required courses
Program: Undergraduate
Prerequisite: COMM 220, 308. This course is the first of two that provide a theoretical foundation upon which subsequent 400-level courses will be built. The course examines the allocation of capital in financial markets and the determination of the relative prices of financial assets. Topics covered include utility theory, arbitrage pricing theory, and asset pricing models such as the Capital Asset Pricing Model and the option pricing model. Applications explored include arbitrage, the design of markets and the appropriate responses of individuals and firms to changes in market conditions as well as to market imperfections.
Prerequisites & notes
NOTE: Students who have received credit for FINA 380 may not take this course for credit.
Program: Undergraduate
Prerequisite: COMM 220, 308; FINA 385 previously or concurrently. This course focuses on the financial theory of the firm and examines the Modigliani-Miller propositions, agency theory, and asymmetric information theory. Topics covered include capital structure and the cost of capital, investment and financing decisions, real options, valuation and issuance of new securities, mergers and acquisitions, and leveraged buyout decisions.
Prerequisites & notes
NOTE: Students who have received credit for FINA 390 or 400 may not take this course for credit.
+ 18 additional credits at the 400-level chosen from the following
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. This course is concerned with the key aspects of short-term financial management. It begins with a brief coverage of the institutional environment facing the financial manager in Canada. A detailed coverage of sources for short-term borrowing and investments is presented. The structure of the Canadian financial system along with a description of the various methods of effecting payments as well as the clearing and settlement system are covered. Topics in overall liquidity management are briefly reviewed from a theoretical perspective. Traditional subjects in cash management such as collections, disbursement and control, forecasting, company bank relationship, short-term investment, and borrowing are examined next. Such new developments as electronic data interchange and EFT/POS are also examined. The course also provides a coverage of trade credit both from a theoretical positive standpoint and a normative viewpoint.
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. This course uses case discussions to focus on the application of the principles of finance learned in FINA 385 and 395 in real-world contexts. Cases will cover topics in corporate finance, investments, and financial markets and institutions.
Prerequisites & notes
NOTE A/See §200.2
NOTE: Students who have received credit forFINA 490 may not take this course for credit.
Program: Undergraduate
This course provides a basic level of understanding of various technical analysis methodologies that are used by investment professionals and the investing public. The course examines market microstructure and order entry mechanics, high‑frequency trading, behavioural finance and the efficient market hypothesis. The main topics include analysis of price charts to forecast future price trends and patterns, development and testing of a trading system, Dow theory, moving averages, momentum, sentiment, relative strength and intermarket analysis. This course is an excellent preparation for several investment industry designations. Pedagogical methods include lectures, a presentation by an industry expert, and a group project to build and test a trading system using simulation and investment software in the John Dobson – Formula Growth Investment Room.
Prerequisites & notes
Prerequisites: FINA 385, 395.
NOTE: Students who have received credit for this topic under a FINA 455 number may not take this course for credit.
Program: Undergraduate
This course focuses on evaluating stocks using modern valuation methods. The main topics include understanding the different investment styles, reading and interpreting financial statements from an investor’s perspective, industry analysis and stock analysis. Pedagogical methods include lectures, discussion of books, presentations by industry experts, use of the Formula Growth Investment Room and evaluation of potential companies for investment purposes.
Prerequisites & notes
Prerequisite: Permission of the Department.
NOTE: Students who have received credit for FINA 410 or for this topic under a FINA 455 number may not take this course for credit.
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. This course is devoted to an examination of the investment decision, both from the viewpoint of the individual investor and the institutional investor. The course examines valuation of different financial instruments such as treasury bills, bonds, common stocks, preferred stocks, options, warrants, convertibles, rights, commodity and financial futures, mutual funds, and pension funds. The use of different instruments in various investment strategies such as investment, speculation, hedging, and arbitrage are also examined. Techniques examined by analysts to pick investments such as fundamental analysis, technical analysis, and quantitative analysis are studied.
Prerequisites & notes
NOTE A/See §200.2
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. This course focuses on modern investment theory and its application to the management of entire portfolios. Topics include: a) construction of optimal asset portfolios using techniques such as the single index model, b) extensions of the capital asset pricing model and tests (e.g. the zero-beta model), c) criteria for evaluation of investment performance, d) active vs. passive portfolio management, e) portfolio insurance, and f) market efficiency. A computer exercise is assigned to illustrate the application of the theory.
Prerequisites & notes
NOTE A/See §200.2
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. This course is a comprehensive analysis of the options and futures markets in North America. The student is introduced to the different markets for these instruments and their institutional details. The different types of options and futures currently trading are examined. The principles of valuation of futures and options, their use in risk management through hedging techniques and their use in speculative strategies are studied. Emphasis is placed on the analysis of financial options and futures.
Program: Undergraduate
Prerequisite: FINA 412. This course focuses on advanced topics in the area of derivatives. Topics covered include the valuation of derivatives using numerical procedures and martingales, modelling the term structure of interest rates, valuation of interest rate swaps, interest rate options, caps, floors, swaptions and exotic options, and application of derivatives in risk management such as value at risk models, estimation of volatility and credit risk derivatives.
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. This course examines the financial aspects of mergers and acquisitions. Basic financial theory and empirical evidence related to corporate control activity is discussed. Some of the topics covered include target identification and valuation, bidding strategies, defensive strategies, financing strategies and growth by acquisition strategies. In addition, going private transactions such as leverage buyouts and management buyouts are discussed.
Program: Undergraduate
This course examines how the behaviour of managers, boards of directors, or financial analysts deviates from models of “rational” behaviour in some situations, and how these deviations affect shareholder wealth. The course explores how behavioural characteristics like mental accounting, overconfidence, herding, framing and loss aversion cause the assumptions of rational economic behaviour to break down at both the individual and systemic levels.
Prerequisites & notes
Prerequisite: FINA 385, 395.
NOTE: Students who have received credit for this topic under a FINA 455 number may not take this course for credit.
Program: Undergraduate
The course focuses on concepts, principles and analytical methods of real estate finance. It begins with a comprehensive investigation of mortgages from the perspective of both borrowers and lenders. The basics are then applied to analyze mortgage risk, commercial mortgage-backed securities (CMBS), market and mortgage securitization, as well as investment decisions on acquisition and financing of commercial real estate assets. Pedagogical methods include lectures, class discussions on contemporary issues, guest speakers, case studies, group project and risk analysis of mortgage-backed securities.
Prerequisites & notes
Prerequisites: COMM 308; FINA 210.
NOTE: Students who have received credit for FINA 450 may not take this course for credit.
Program: Undergraduate
This course is intended primarily for Finance Majors and Minors. It provides an opportunity for more intensive study in one or more specific topics of finance. The topic varies according to the special interests of the professor and the students. Enrolment is restricted and is subject to departmental approval.
Prerequisites & notes
NOTE A/See §200.2
NOTE: Specific topics for this course and prerequisites relevant in each case will be stated in the Undergraduate Class Schedule.
Program: Undergraduate
Prerequisite: FINA 412; permission of the Department. This course focuses on developing practical skills in trading financial securities. Topics covered include general trading practices, fundamental and technical analysis, term structure of interest rates, arbitrage opportunities, and trading strategies using options, futures and options on futures contracts. Speakers from the finance industry are also invited to share their experiences with the students.
Prerequisites & notes
NOTE: Students who have received credit for this topic under an FINA 455 number may not take this course for credit.
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. This course examines the fundamental principles and issues in international finance. After examining the recent global evolution of the international financial environment, the institutional characteristics of foreign exchange and euro-currency markets will be studied. In addition, in-depth coverage of various issues relating to forecasting exchange rates, capital movements, and the international structure of interest rates is provided. Several mechanisms for managing international exchange and financial risk will be assessed, including forwards, options, and futures on currencies as well as on interest rates. The course will conclude with a survey of recent international asset pricing models.
Prerequisites & notes
NOTE: This course is offered for Finance Majors and Minors only. Non-Finance Majors and Minors must register for FINA 370.
NOTE: Students who have received credit for FINA 370 or IBUS 370 may not take this course for credit.
Program: Undergraduate
Prerequisite: FINA 470. This course addresses financial issues that corporations, investors, or financial institutions face when they expand their operations to the international environment. Topics addressed include international capital budgeting and capital structure, political risk, financing international trade, multinational cost of capital, international corporate governance, and international working capital management. Financial markets and institutions in emerging economies are also examined.
Program: Undergraduate
Prerequisite: FINA 380 or 385; FINA 390 or 395. The objective of this course is to provide a framework for the management of financial institutions within the domestic environment. Specific topics include an overview of the different types of financial institutions such as banks, insurance companies, investment banks, pension funds and mutual funds, and the management of risks facing these intermediaries while operating within the domestic economy, such as liquidity risk, interest rate risk, market risk, and credit risk.
Prerequisites & notes
NOTE: Students who have received credit for FINA 480 may not take this course for credit.
Program: Undergraduate
This course provides students with an integrating framework to understand the risks, challenges and opportunities that banks face in their global operations. The course covers both commercial and investment banking activities in mature as well as emerging markets. The course begins with an examination of opportunities that foreign markets offer as well as difficulties that banks face when dealing with unfamiliar economic and political environments abroad. This is followed by a discussion of banking operations in international and foreign markets. Topics for this discussion may include microfinance, international loans, project financing and an assessment of political or sovereign risks. The impact of foreign operations on mitigation or enhancement of various risks associated with home country operations is examined. The course also examines the importance of global regulation as well as governance and ethical issues associated with international banking.
Prerequisites & notes
Prerequisite: FINA 481 previously or concurrently.
This course is offered for Finance majors and minors only.
Students who have received credit for FINA 382 or IBUS 382, or for this topic under a FINA 455 or IBUS 471 number, may not take this course for credit.
Program: Undergraduate
Prerequisite: Enrolment in the Honours program. This seminar is offered to Honours students in Finance over a period of two terms. In the first term, the seminar covers methodology and recent advances in research in topics covered in the Finance curriculum. In addition, students begin working on a thesis/project to be conducted under the supervision of a faculty member. In the second term, students complete their thesis/project and are required to submit a written report to be presented at the seminar at the end of the term.
Prerequisites & notes
Prerequisite: Enrolment in the Honours program.
Notes:
- All Business courses are 3 credits in length.
- All BComm students are required to declare a Major.
- Students can declare a business double major in the BComm program, replacing any previously declared business minor. The John Molson School of Business may impose quotas on some majors.
- The information above is strictly for the 90-credit program.
- To review the course requirements for your year of entry in the program please refer to the course calendar or degree worksheet for that year.
