Academic Programs Catalog

The Eli Broad College of Business and The Eli Broad Graduate School of Management

Department of Finance

Andrew Y. Simonov, Chairperson


Undergraduate Programs

The Department of Finance offers a Bachelor of Arts degree program with a major in finance.

Finance majors can concentrate in (1) corporate finance and (2) financial markets and investments, or in both.  The former involves the financing and investment activities of an organization as well as its governance practices, while the latter explores financial investment decisions, portfolio selection and management, and behavioral finance. In addition students can complete a Minor in Insurance and Risk Management or take a wealth management program.

Qualified students are encouraged to pursue honors courses, study abroad programs, non-credit internship opportunities with national and international corporations, and cross-college specializations such as international business and entrepreneurship.


Finance

Finance encompasses business financial administration, management of financial institutions, investments, financial markets, and the management of risk. Business financial administration includes obtaining external funds in the money and capital markets, selecting and evaluating investment projects, coordinating the flow of funds from operations, and determining the benefits to be returned to suppliers of capital. An understanding of financial concepts and practices along with knowledge of the instruments and participants in the financial markets is vital to sound financial decision making.

The study of financial institutions involves analyzing the management of commercial banks, savings and loan associations, credit unions, insurance companies, and pension funds. The role of these institutions in the economy is examined. Financial policies and strategies in an increasingly competitive institutional marketplace are emphasized.

The field of investments involves the analysis and selection of securities with special emphasis on stocks and bonds. The role of these instruments in portfolios of individuals and financial institutions is explored.

Financial markets represent the environment within which corporations, financial institutions, and investors create financial assets and liabilities. The nature of the various financial instruments is examined, as well as market innovations and structural changes.

The finance major includes a course in intermediate accounting in addition to courses in finance. The program provides a valuable foundation for initial employment and continued career development in business administration. Employment opportunities exist with industrial firms, public utilities, commercial banks, insurance companies, brokerage firms, credit unions, savings and loan associations, and agencies of local, state, and federal government.

Requirements for the Bachelor of Arts Degree in Finance

  1. The graduation requirements of the University as described in the Undergraduate Education section of this catalog; 120 credits, including general elective credits, are required for the Bachelor of Arts degree in Finance.

    The completion of Mathematics 103 and Statistics and Probability 200 [referenced in item 2. below] may also satisfy the University mathematics requirement.

    The University's Tier II writing requirement for the Finance major is met by completing Finance  414.  That course is referenced in item 3. a. (1) below.
  2. The requirements of The Eli Broad College of Business for the Bachelor of Arts degree in the majors that comprise the Business Administration Programs.
  3. The following requirements for the major:
    a. Major Field of Concentration. A minimum grade-point average of 2.0 in the courses that are listed below. Students intending to take additional course work in Accounting should substitute ACC 300 Intermediate Financial Accounting I for ACC 305.
    (1) All of the following courses (9 credits):
    ACC 305 Intermediate Accounting for Finance Majors 3
    FI 312 Introduction to Investments 3
    FI 414 Advanced Business Finance (W) 3
    (2) Complete an additional 9 credits from an approved list of Finance elective courses available from the college's undergraduate academic services unit.


Minor in Financial Planning and Wealth Management

The Minor in Financial Planning and Wealth Management, which is administered by the Department of Finance, is designed to develop the knowledge and skills necessary to thrive in the field of financial planning and wealth management. The program develops knowledge of the industry’s financial, accounting, taxation, and regulatory environments, as well as the art of relationship management and the importance of a thorough appreciation of individual client differences and diversity. The program should be of interest to students whose undergraduate major is not in business or finance.

The minor is available as an elective to students who are enrolled in bachelor’s degree programs at Michigan State University.  With the approval of the department and college that administer the student’s degree program, the courses that are used to satisfy the requirements for the minor may also be used to satisfy the requirements for the bachelor’s degree. At least 9 credits counted towards the requirements for this minor must be unique. Unique credits must not be used to fulfill another university, college, or major requirement in the student’s program.

Students who plan to complete the requirements of the minor should consult an academic advisor in the Undergraduate Academic Services unit in the Eli Broad College of Business. Finance majors pursuing the minor should consult with their academic advisor to ensure that both their major and minor requirements are satisfied.

Admission

To be considered for admission to the Minor, a student must have completed one course from item a. and one course from item b. with a grade of at least 3..0 in each course:

a. STT 200 Statistical Methods 3
STT  201 Statistical Methods   4
STT  231 Statistics for Scientists 3
STT  315 Introduction to Probability and Statistics for Business 3
STT  351 Probability and Statistics for Engineering  3
STT  421 Statistics I  3
STT  441 Probability and Statistics I: Probability 3
b. FI  311 Financial Management 3
FI  320 Introduction to Finance 3
Students must provide a completed online application, including a statement of purpose and a resume. This online application must be received by the Department of Finance by March 15 for the fall or summer semester admission, and by October 1 for the spring semester admission. By applying to the Minor, a student would agree to allow the selection committee to review the student’s grades.

Admission to the Minor is competitive and, therefore, not guaranteed. Meeting the minimum standards listed above does not guarantee admission. The applicant’s overall record is considered, including the student’s statement of objectives, and extra-curricular activities. Admission is subject to space availability.

Requirements for the Minor in Financial Planning and Wealth Management
Complete 15 credits from all of the following:
FI 312 Introduction to Investments 3
FI 370 Introduction to Financial Planning and Wealth Management 3
FI 380 Principles of Insurance and Risk Management 3
FI 460 Estate and Income Tax Planning 3
FI 470 Advanced Financial Planning and Wealth Management 3

Academic Standards

Students enrolled in the minor are expected to maintain a minimum grade-point average of 3.0 each semester, as well as a minimum cumulative grade-point average of 3.0. A student who does not maintain a 3.0 cumulative grade-point average will be placed on probation. Such a student will be given the next semester of enrollment to achieve a 3.0 cumulative grade-point average; otherwise, the student will be dismissed from the minor.

The Program Director is responsible for monitoring the progress of students enrolled in the program. A policy statement containing additional information relative to academic standards is available from the Director.




 

Minor in Insurance and Risk Management

The Minor in Insurance and Risk Management, administered by the Department of Finance, teaches the skills necessary for students seeking careers as underwriters, claim adjusters, agents, or brokers in the insurance organization, as well as careers in risk management in financial institutions. Students will learn how to quantify, manage, and price risk, while learning the structure, evolution and regulation of the finance and insurance sector of the economy.

The minor is available as an elective to students who are enrolled in bachelor’s degree programs at Michigan State University. With the approval of the department and college that administer the student’s degree program, the courses that are used to satisfy the minor may also be used to satisfy the requirements for the bachelor’s degree.

Admission

Students who plan to complete the requirements of the minor should consult the undergraduate advisor in the Department of Finance to apply. To be admitted to the minor students must have completed two of the following courses with a grade of 3.0 through selection of a course from item a. and a course from item b.:

a. STT 200 Statistical Methods 3
STT 201 Statistical Methods 4
STT 231 Statistics for Scientists 3
STT 315 Introduction to Probability and Statistics for Business 3
STT 351 Probability and Statistics for Engineering 3
STT 421 Statistics I 3
STT 441 Probability and Statistics I: Probability 3
b. FI 311 Financial Management 3
FI 320 Introduction to Finance 3

Students must provide a completed online application, including a statement of purpose and resume. The online application must be completed by March 15th. Admission decisions are made in late spring each year. Admission is highly competitive and therefore not guaranteed. By applying to the minor, you give consent to the selection committee to review your grades.

Requirements for the Minor in Insurance and Risk Management

Students must complete 15 credits from the following:
 
1. At least two of the following courses (5 or 6 credits):
EC 301 Intermediate Microeconomics 3
EC 330 Money, Banking, and Financial Markets 3
FI 312 Introduction to Investments 3
FI 321 Theory of Investments 3
FI 413 Management of Financial Institutions 3
FI 414 Advanced Business Finance (W) 3
MKT 319 Customer and Market Insights 3
SCM 475 Supply Chain Decision Modeling 2
2. All of the following courses (9 credits):
FI 380 Principles of Insurance and Risk Management 3
FI 480 Financial Risk Management 3
FI 481 Crises, Insurance, and Risk Management 3


 

Linked Bachelor's-Master's Degree in Financial Planning and Wealth Management

Bachelor of Arts Degree in Finance
Master of Science Degree in Financial Planning and Wealth Management


The department welcomes applications from Michigan State University undergraduate students in the Finance major in their junior and senior year. Admission applications must be made during the prior spring semester for an anticipated spring graduation or the prior fall semester for an anticipated fall graduation to allow admission before the final semester as a Finance undergraduate. Admission to the Linked Bachelor’s-Master’s program requires admission to the Master of Science in Financial Planning and Wealth Management degree program, completion of the required prerequisites for the master’s program, and an approved program of study for the Master of Science degree at the time of admission. Admission to the Linked Bachelor’s-Master’s program allows the application of up to 9 credits toward the master’s program for qualifying 400-level and above course work taken at the undergraduate level at Michigan State University or an external accredited institution. The number of approved credits, not to exceed 9, are applied toward the credit requirement of the master’s degree. Credits applied to the Linked Bachelor’s-Master’s program are not eligible to be applied to any other graduate degree program. 

 

Graduate Study

The Department of Finance offers a Master of Business Administration degree program with a concentration in Finance. For information about that program, refer to the Master of Business Administration statement in the Broad College section.

The department also offers a Master of Science degree program in Finance and a Master of Science degree program in Financial Planning and Wealth Management. A Graduate Certificate in Financial Planning and Wealth Management is also available. Those programs are described below.

In addition, the department offers a Doctor of Philosophy degree program with a major in Finance.  For information about that program, refer to the Doctor of Philosophy statement in the Broad College section.


Finance - Master of Science

The Master of Science degree with a major in finance provides graduate-level financial training to individuals with career experience and an undergraduate degree in finance or a related field. The program is only available under Plan B (without thesis). The curriculum is flexible and allows students to choose courses that will meet their specific professional needs. Courses are offered in all of the major areas of finance including financial management, financial institutions, investments, and international finance.

Admission

To be considered for admission to the Master of Science degree in Finance an applicant must:

  1. Submit to the Department of Finance a completed application packet that is available from the department.
  2. Have an undergraduate degree from a recognized educational institution.
  3. Have at least two-years of full-time work experience after earning the bachelor’s degree.

Admission to the program is competitive and is based on the applicant’s overall record. Although not required, it is recommended that students take either the Graduate Management Admission Test (GMAT) or the Graduate Record Examination (GRE) General Test. Strong scores on these tests raise the likelihood of admission. International students must take the Test of English as a Foreign Language (TOEFL).

In addition to meeting the requirements of the university and The Eli Broad College of Business and Graduate School of Management, students must meet the requirements specified below.

Requirements for the Master of Science Degree in Finance

The program is available under Plan B (without thesis). A total of 30 credits are required for the degree. The student’s program of study must be approved the program director.

               
1. Complete one of the following courses: (3 credits):  
  FI 801 Managerial Finance 3
  FI 980 Theory of Finance 3
  Students who pass a departmental waiver examination for Finance  
  801 or 980 will not be required to complete Finance 801 or 980.  
2. Complete at least 15 credits of 800-900 level courses offered by the Department of Finance.  
3. Complete at least 12 credits of courses in finance or in fields related to finance including other business disciplines, economics, statistics,  and mathematics. At least 6 credits must be at the 800-level or above.  
4. Pass a final certifying examination on the course work.  

Academic Standards

Students must maintain a cumulative grade-point average of at least 3.25 in all graduate courses.



Financial Planning and Wealth Management - Master of Science

The Master of Science degree in Financial Planning and Wealth Management is designed to develop the knowledge and skills necessary to thrive in the field of financial planning and wealth management. The program develops knowledge of the industry’s financial, accounting, taxation, and regulatory environments, as well as the art of relationship management and the importance of individual client differences.

Admission

Students may begin the program in any semester, as space permits. Applications for summer or fall admission must be received by March 15. Applications for spring admission must be received by October 1.

To be considered for admission to the program, applicants must:

  1. submit a completed application packet to the Director of the program, available on the program Web site.
  2. take the Graduate Management Admission Test (GMAT) or Graduate Record Examination (GRE) and have the scores submitted to the program Director. The GMAT test must be taken not more than five years or the GRE not more than two years prior to the submission of the application for admission to the program. Current Michigan State University students with an overall grade-point average of 3.0 or higher are not required to take the GMAT or GRE.
The minimum standards for admission to the program are:
  1. a bachelor's degree from a recognized educational institution with a minimum grade-point average of 3.0.
  2. completion of the following prerequisite courses, or their equivalents at MSU or at another institution:
    1. an introduction to accounting
    2. probability and statistics
  3. a strong GMAT/GRE score. Students with qualifying credentials may be able to waive the GMAT/GRE requirement. Applicants should consult with the program Director to see if they are eligible for the waiver.
Admission to the program is competitive and subject to space availability. The program accepts qualified applicants whose undergraduate degree is not in business or finance. Meeting the minimum standards listed above does not guarantee admission. The applicant’s overall record is considered including letters of recommendation, the student’s statement of objectives, any relevant work experience, extra-curricular activities, and TOEFL or IELTS scores when appropriate.

Requirements for the Master of Science Degree in Financial Planning and Wealth Management

The program is available under Plan B (non-thesis). A total of 30 credits are required for the degree, as described below.
1. Students must complete 18 credits from the following:
FI  801 Managerial Finance 3
FI  830 Introduction to Financial Planning and Wealth Management 3
FI  832 Principles of Insurance and Risk Management  3
FI  836 Estate and Income Tax Planning 3
FI  838 Advanced Financial Planning and Wealth Management   3
FI  850 Introduction to Investments I 1.5
FI  851 Introduction to Investments II 1.5
2. Complete an additional 12 credits from an approved list of elective courses available from Department of Finance.
3. Completion of a final examination or evaluation.

Academic Standards
Students who are enrolled in the Master of Science Degree in Financial Planning and Wealth Management program are expected to maintain a minimum grade-point average of 3.0 each semester, as well as a minimum cumulative grade-point average of 3.0. A student who does not maintain a 3.0 grade-point cumulative average will be placed on probation. Such a student will be given the next semester of enrollment to achieve a 3.0 grade-point cumulative average, otherwise, dismissal from the program will result.
 
The Program Director is responsible for monitoring the progress of students who are enrolled in the program. A policy statement containing additional information relative to academic standards is available from the Director.



 

Financial Planning and Wealth Management - Graduate Certificate

The Graduate Certificate in Financial Planning and Wealth Management is designed to develop the knowledge and skills necessary to thrive in the field of financial planning and wealth management. The program develops knowledge of the industry’s financial, accounting, taxation, and regulatory environments, as well as the art of relationship management and the importance of individual client differences.

Admission

Students may begin the program in any semester, as space permits. Applications for summer or fall admission must be received by March 15. Applications for spring admission must be received by October 1.

To be considered for admission to the program, applicants must:

  1. submit a completed application packet to the Director of the program, available on the program Web site.
  2. take the Graduate Management Admission Test (GMAT) or Graduate Record Examination (GRE) and have the scores submitted to the program Director. The GMAT test must be taken not more than five years or the GRE not more than two years prior to the submission of the application for admission to the program. Current Michigan State University students with an overall grade-point average of 3.0 or higher are not required to take the GMAT or GRE.
The minimum standards for admission to the program are:
  1. a bachelor's degree from a recognized educational institution with a minimum grade-point average of 3.0.
  2. completion of the following prerequisite courses, or their equivalents at MSU or at another institution:
    1. an introduction to accounting
    2. probability and statistics
  3. a strong GMAT/GRE score. Students with qualifying credentials may be able to waive the GMAT/GRE requirement. Applicants should consult with the program Director to see if they are eligible for the waiver.
Admission to the program is competitive and subject to space availability. The program accepts qualified applicants whose undergraduate degree is not in business or finance.

Meeting the minimum standards listed above does not guarantee admission. The applicant’s overall record is considered including letters of recommendation, the student’s statement of objectives, any relevant work experience, extra-curricular activities, and TOEFL or IELTS scores when appropriate. 

Requirements for the Graduate Certificate in Financial Planning and Wealth Management
Students must complete 18 credits from the following:
FI  801 Managerial Finance 3
FI  830 Introduction to Financial Planning and Wealth Management 3
FI  832 Principles of Insurance and Risk Management  3
FI  836 Estate and Income Tax Planning 3
FI  838 Advanced Financial Planning and Wealth Management  3
FI  850 Introduction to Investments I 1.5
FI  851 Introduction to Investments II   1.5
Other classes may be used to fulfill these requirements with department approval. Students that are continuing their education at MSU may substitute up to 9 credits in their program from equivalent 400-level courses in Finance taken in their undergraduate program. The department maintains a list of course equivalencies for courses in the Department of Finance.

Academic Standards

Students who are enrolled in the Graduate Certificate in Financial Planning and Wealth Management program are expected to maintain a minimum grade-point average of 3.0 each semester, as well as a minimum cumulative grade-point average of 3.0. A student who does not maintain a 3.0 grade-point cumulative average will be placed on probation. Such a student will be given the next semester of enrollment to achieve a 3.0 grade-point cumulative average, otherwise, dismissal from the program will result.

The Program Director is responsible for monitoring the progress of students who are enrolled in the program. A policy statement containing additional information relative to academic standards is available from the Director.