1.1Introduction to Finance
J: Hi, I’m Jim Stice.
K: And I’m Kay Stice. We’re brothers, and we are both business school professors at Brigham Young University.
J: We have been teaching in business schools around the world for a combined total of 70 years. We have taught in the United States,
K: Hong Kong,
K: Shanghai, Beijing, Kazakhstan,
J: and South Africa.
K: This course is an introduction to the field of finance.
J: As you will learn, we are all SURROUNDED by finance…
K: deciding what things to buy, and not to buy,
J: getting the money to buy the things that you have decided that you need, and
K: efficiently managing the resources that you have.
J: This is FINANCE: What to buy, where to get the money to buy it, and how to manage it once you have it.
K: As you can imagine, FINANCE is important to individuals, to families, to companies, to governments … really, to ALL organizations.
J: As we learn about finance, we are going to look at the financial reports of Walmart.
K: We are going to see the roller-coaster cash flow pattern of Toys R Us.
J: We will learn the secrets of the Capital Asset Pricing Model, the “Cap M.”
K: We will talk about trading stocks and bonds and look at the IPOs of Microsoft and Facebook.
J: We’ll learn what an “investment bank” is.
K: I’ll show you the financial analysis that I did in trying to decide whether to buy a car when my family lived in Hong Kong.
J: And we’ll end with some basic principles of personal financing planning.
K: So what does a person need to know to take this course?
J: There are no prerequisites for this course. This is a general introduction to finance, so you don't need any specialized knowledge. We will explain any new terms that we introduce.
K: We will use lots of real-life illustrations. We will talk about Microsoft and Walmart and Facebook because finance exists in the real world.
J: So, join us in the study of … FINANCE.