Lesson 1 Overview

Lesson 1 introduces you to a variety of concepts and terms needed for a basic understanding of finance. You will receive a foundational introduction to the field of finance, including a brief look at how finance has evolved over time. You will also be introduced to several key financial concepts and ideas that are the means through which corporations raise and use money, i.e. captial. Future lessons will continue to delve into these theories and practices in more detail. You will also explore how ethics and a corporation's ethical code of conduct should be used to guide these decisions.

It is important to note that some of the information you will see in this lesson and in Lesson 02 will not be new, as they were covered in your introductory accounting and economics classes. For this class, you will be asked to apply the concepts you already know in a different way. Keep in mind that an accountant compiles and organizes financial data to maintain an organizations financial statements. An economist seeks to understand how to allocate resources to meet consumer demands. A corporation finance officer uses both sets of data to inform decisions with the goal of maximizing value for the company and its stakeholders. 

In Lesson 01 you will also be divided into teams and given the opportunity to invest in the equity market. Thus, you will also be given a brief introduction to the stock market and initial public offerings in this lesson to be followed by more comprehensive study in future lessons. The group project will span the duration of the course; however, here in Lesson 01 you will spend time forming your team, devising your investment strategies, and making your initial stock selections. (See How the Market Works Instructions for further information.)

Learning Objectives

After successful completion of this lesson, you should be able to

• list the different types of business organizations;
• state the main goal of both corporations and stakeholders;
• distinguish the primary and secondary markets;
• recognize the importance of business ethics; and
• use library resources to research corporations.

Lesson Readings & Activities

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 1 Course Schedule.