This is an archived copy of the 2014-16 catalog. To access the most recent version of the catalog, please visit http://catalog.utexas.edu/.

Finance

Finance is the study of resource allocation—the process, markets, institutions, and instruments that provide for the transfer of money and wealth. The finance degree program offers students an opportunity to study the finance function in the business firm, the financial services firm, and the financial system.

The finance major presents students with the theoretical framework and analytical tools and techniques to handle a variety of finance and business functions. Students may choose one of seven tracks: corporate finance and investment banking, energy finance, investment management, financial markets/banking, quantitative finance, or real estate; students who do not wish to specialize may choose the general finance track.

Corporate finance and investment banking courses are designed to prepare students for careers as associates of corporate treasury departments, as corporate financial analysts, and as management consultants. Energy finance courses are designed to prepare students for positions in project financing, valuation, and risk management in the energy sector. Investment management courses are designed to give students a background suitable for starting positions as financial analysts with investment funds, investment banks, and other financial institutions. Financial markets/banking courses are designed to prepare students for a variety of financial institution–related careers, such as lending officer and financial analyst. Quantitative finance courses are designed to prepare students for financial analyst positions in research departments of financial institutions and for graduate study in finance. Real estate courses are designed to give students a broad background in valuing and managing real estate; the track is intended to prepare students for positions in real estate commercial brokerage and appraisal, mortgage banking, loan underwriting, real estate development and investment, and property management.

Finance majors may specialize further by completing the Financial Analyst Program (FAP). This one year program allows competitively selected business students to work closely with finance faculty members and industry professionals to develop their skills and experience as analysts. The program may be combined with any of the finance options. More information about FAP is available in the Department of Finance office and at http://www.mccombs.utexas.edu/Centers/AIM/Financial-Analyst-Program.aspx .

The requirements of this program are:

  1. The Core Curriculum and the BBA Degree Requirements .
  2. Accounting 326, Finance 367 or 367Q (students pursuing the quantitative finance option must choose 367Q), and 370 (may fulfill writing and independent inquiry flags).
  3. Only one independent study may be counted toward the finance major with the exception of the general finance track and the real estate track, which do not allow independent study, as noted below.
  4. One of the following:
    1. Corporate Finance and Investment Banking
      1. Finance 374C.
      2. One of the following courses: Accounting 327 (may fulfill the quantitative reasoning flag), 329, 362, or 364.
      3. Two of the following courses: Finance 366P, 371M, 372, 373, 376, 377 (Topic 1: Portfolio Analysis and Management), either 377 (Topic 2: Financial Risk Management) or 377 (Topic 5: Energy Financial Risk Management), and either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis).
    2. Energy Finance
      1. Finance 374C and Finance 377 (Topic 5: Energy Financial Risk Management).
      2. Two of the following courses: Finance 366P, 371M, 372, 373, 375F, 376, 377 (Topic 1: Portfolio Analysis and Management), and either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis).
    3. Investment Management
      1. Finance 377 (Topic 1: Portfolio Analysis and Management).
      2. Three of the following courses: Finance 366P, 371M, 372, 373, 374C or 374S, 375F, 376, either 377 (Topic 2: Financial Risk Management) or 377 (Topic 5: Energy Financial Risk Management), either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis), and Real Estate 378K.
    4. Financial Markets/Banking
      1. Finance 354 or 371M.
      2. Three of the following courses: Finance 366P, 372, 373, 374C or 374S, 375F, 376, 377 (Topic 1: Portfolio Analysis and Management), either 377 (Topic 2: Financial Risk Management) or 377 (Topic 5: Energy Financial Risk Management), either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis), and Real Estate 378K.
    5. General Finance
      1. Twelve semester hours of upper-division coursework in finance; up to three hours may be taken in real estate. The following courses may not be used to fulfill this requirement: Finance 353, 357, 367, and 370. Finance 354 and 371M may not both be used. Finance 374C and 374S may not both be used. Finance 377 (Topic 2: Financial Risk Management) and 377 (Topic 5: Energy Financial Risk Management) may not both be used. Finance 377 (Topic 3: Security Analysis) and 377 (Topic 4: Financial Analysis) may not both be used; Topic 3 is open only to students in the Financial Analyst Program.
      2. An independent research course may not be counted toward the general finance option.
    6. Quantitative Finance
      1. Statistics 375 or 375H. Completing this requirement will also fulfill the requirement for the statistics course listed in item 7.1.5 of the BBA degree requirements .
      2. Finance 367Q. Completing this requirement will also fulfill the requirement listed in item 2 of the finance program requirements given above.
      3. Finance 374C.
      4.  Finance 377 (Topic 2: Financial Risk Management) or 377 (Topic 5: Energy Financial Risk Management).
      5. One of the following courses: Finance 371M, 372, 373, 376, 377 (Topic 1: Portfolio Analysis and Management), and either 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis).
      6. One of the following courses: Statistics 372 (Topic 5: Financial and Econometric Time Series Modeling), 372 (Topic 6: Optimization Methods in Finance), 372 (Topic 7: Computational Finance), Management Information Systems 373 (Topic 17: Data Mining for Business Intelligence), Finance 366P.
    7. Real Estate
      1.  Finance 354 or 371M.
      2. One of the following courses:  Finance 377 (Topic 3: Security Analysis) or 377 (Topic 4: Financial Analysis), 374S or 374C.
      3.  Six semester hours of coursework in real estate. 
      4.  An independent research course may not be counted toward the real estate option.
  5. Additional elective coursework, if necessary, to provide a total of at least 120 semester hours.