Academic Programs Catalog

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.

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.




 

The Minor in Insurance and Risk Management, administered by the Department of Finance, provides the student with fundamental knowledge of risk management skills and the application of insurance to mitigate those risks. The minor is a valuable addition to any business degree/career allowing the student to better identify and manage risk in any industry or at a personal level, and to understand key insurance concepts. In addition, the minor is an effective introduction to the insurance industry, teaching the fundamental concepts, coverages, operations, and financial aspects of the insurance industry. 

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	413	Management of Financial Institutions						3
	FI	414	Advanced Business Finance (W)						3
	FI	480	Financial Risk Management						3
	MKT	319	Customer and Market Insights						3
	STT	467	Insurance Operations						3
2.	All of the following courses (9 credits):
	FI	380	Principles of Insurance and Risk Management						3
	FI	381	Enterprise Risk Management and Insurance Theory						3
	FI	481	Advanced Enterprise Risk Management and Industry Applications						3