Finances are the lifeblood of a business. While they may at first glance appear complicated, they can easily be broken down into simple-to-understand concepts that will provide you with a solid understanding of finance. This course will dive into the fundamentals of finance, financial statements, and skills that you can use to manage financial risks.
Specifically, you’ll learn about corporate and personal finance, financial markets and institutions, the different types of financial statements and the information that they need, ratio types, forecasting, pro-forma statements, risk mitigation, equity risk premiums, and risk-return tradeoffs. When you finish this course, you’ll have a solid foundation for understanding finance that you can use in your professional and your personal life.
Learning Objectives
- Know the difference between corporate and personal finance
- Know the difference between primary and secondary markets
- Learn basic facts about financial institutions
- Learn what information is needed in certain types of financial statements
Skills you’ll gain
Financial LiteracyBusiness ConceptsCorporate FinanceFinanceFinancial And Business Management SystemFinance CertificationWhat You'll Learn
- Distinguish between corporate finance and personal finance
- Differentiate primary markets from secondary markets
- Identify basic facts about financial institutions such as banks and investment funds
- Read and interpret balance sheets, income statements, and cash flow statements
- Apply liquidity, leverage, efficiency, profitability, and market value ratios
- Manage financial risk using risk-reduction methods, equity risk premiums, and the risk-return tradeoff
Key Takeaways
- Finance can be broken down into simple-to-understand concepts that build a solid foundation for both professional and personal use.
- The course covers the fundamentals of finance, financial statements, and skills for managing financial risks.
- Topics include corporate and personal finance, financial markets and institutions, financial statements, ratio types, forecasting, pro-forma statements, risk mitigation, equity risk premiums, and risk-return tradeoffs.
- Different types of financial statements require specific information to be complete.
- Understanding risk in finance involves methods of reducing risk, the equity risk premium, and the risk-return tradeoff.
Frequently Asked Questions
What does the Foundations of Finance Series cover?
It dives into the fundamentals of finance, financial statements, and skills for managing financial risks, including corporate and personal finance, financial markets and institutions, types of financial statements and the information they need, ratio types, forecasting, pro-forma statements, risk mitigation, equity risk premiums, and risk-return tradeoffs.
What skills will I gain from this course?
The course builds financial literacy and an understanding of business concepts, corporate finance, finance, and financial and business management systems, leaving you with a solid foundation for understanding finance.
What is the difference between the financial markets discussed in this course?
The course teaches the difference between primary markets and secondary markets, and covers financial institutions such as banks and investment funds.
Can I apply what I learn outside of work?
Yes. The course states that when you finish, you'll have a solid foundation for understanding finance that you can use in your professional and your personal life.
What financial statements does the course teach?
It covers understanding financial statements including balance sheets, income statements, and cash flow statements, along with forecasting and pro forma statements.
Transcript
Show transcript (free preview lesson)
Transcript of the free preview lesson. Remaining lessons unlock with the full course.
Welcome to KnowledgeCity's course: Foundations of Finance. In this course, we'll explore the foundations of finance and learn about the key areas of both corporate and personal finance. This course will help you make better investment decisions by providing you with the information needed to understand the financial statements that both lenders and investors depend on to make informed decisions. By the end of this course, you'll be able to identify and explain the purpose of financial statements, such as the balance sheet, cashflow statement and income statement. You'll also be able to use financial ratios to determine the company's financial condition and how they compare to their competitors from an investment perspective. Let's get started.
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