Finance Major students

Finance Major

Undergraduate Program in Newark

There are three tracks for students who wish to major in finance:

  • Financial Management and Capital Markets
  • Financial Planning
  • Real Estate

The requirements for each track are different although there is some overlap. 

Financial Management and Capital Markets track

The Finance sector is comprised of establishments primarily engaged in financial transactions, which involve the creation, liquidation, or change in ownership of financial assets. Almost every firm, government agency, and other type of organization employ one or more financial managers. Working in offices often close to top managers and with departments that develop the financial data those managers need, financial managers typically have direct access to state-of-the-art computer systems and information services. Our finance graduates secure careers ranging from managing finances for startups to working in the biggest, most prestigious financial firms on Wall Street. Students must be Finance and/or Accounting majors to complete the program.

Career Paths

Financial managers generally oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. Managers also develop and implement the strategies for the long - term goals of their organization. A bachelor’s degree in finance, accounting, economics, or business administration is the minimum academic preparation for financial managers. This track academic programs develops analytical skills and teaches financial analysis methods and technology.

The duties of financial managers vary with their specific titles, which include: equity/bond analyst or trader, investment banker, controller, treasurer or finance officer, credit manager, cash manager, risk and insurance manager, compliance officer, operations manager and international banking supervisor. Candidates for financial management positions need many different skills. Interpersonal skills are key because these jobs involve managing people and working as part of a team to solve problems. Financial managers must also have excellent communication skills in order to explain complex financial data and their interactions. Because financial managers work extensively with various departments in their firm, a broad understanding of business is also essential.

Financial managers should be creative thinkers and problem-solvers, applying their analytical skills to business. They must have knowledge of international finance as financial operations are increasingly being affected by the global economy. In addition, a good knowledge of regulatory compliance procedures is essential.

Rutgers Business School provides students with the skills and industry connections they need to get jobs in the most prominent financial institutions in New York City and beyond. With easy access to the city from either campus, internships, networking events, and alumni connections on Wall Street are minutes away, and provide valuable experiences for our students.

Career Advice

Watch: Lisa Hornby, RU ’07, offers tips on getting noticed as a reliable professional that opens up paths forward in your career.

Sample Occupations

  • Securities Trader
  • Financial Analyst
  • Project Manager
  • Financial Economist
  • Claim Adjuster/Examiner
  • Market Research Analyst
  • Underwriter
  • External Auditor

Where Graduates are Working

  • Credit Suisse
  • Ally Bank
  • J.P. Morgan Chase
  • Northwestern Mutual Financial Services
  • John Hancock Financial
  • State Farm Insurance Companies
  • Bank of New York Mellon
  • Schering – Plough

Compensation

According to the 2012 U.S. Bureau of Labor Occupational Outlook Handbook, bachelor’s degree candidates in finance received offers with a median salary of $76,950.

How to Apply

Curriculum

Students must take at least 24 major credits beyond the school core, including 12 credits of the required courses and at least 12 credits of electives.

School Core Courses (3 credits)

Finance [29:390:329]

Financial concepts and methods of analysis. The time value of money and its relation to such concepts as net present value and internal rate of return; principles of valuation and financial markets. The use of capital budgeting, management of cash flow, and working capital management.

Prerequisites: 21:220:102, 21:220:231, 21:355:101

Required (12 credits)

Financial Econometrics

All finance majors must take Financial Econometrics. Economics majors who are also finance majors may use Introduction to Econometrics (21:220:322).

Investments [29:390:315]

Introduction and analysis of the dimensions of risk and return. Portfolio theory and its application in the management and performance evaluation of investment portfolios. Equilibrium theories of risk and return-capital asset pricing model and the arbitrage pricing model. Interest rate theory, yield curve, linkage between short-term and long-term rates, credit risk, and interest rate risk. Analysis of individual securities: money market securities, bonds and mortgage-backed securities, common and preferred stocks, and derivatives-futures and options.

Prerequisite: 29:390:329

Corporate Finance [29:390:330]

Issues relating to the financing of capital investments. How financial risk affects the cost of capital and helps determine the capital structure of the corporation. Interactions between investment and financing decisions. The uses of various securities to finance an investment, as well as methods such as lease financing.

Prerequisites: 29:390:329, 21:355:102, 21:220:101

Financial Institutions and Markets [29:390:370]

Detailed overview of the theory and institutional features of the U.S. financial system; comprehensive review of the U.S. financial markets.

Prerequisite: 29:320:329

Electives (12 credits)

Students have the option to choose any combination of the following electives.

Ethics in Finance [29:390:331]

This course addresses the ethical dilemmas and conflicts of interest faced in banking, corporate finance, and financial investing. Course materials and discussions address important issues such as fiduciary duties, insider trading, financial reporting, derivative trading, customer deception, churning, bankruptcy, tax evasion, bank lending practices, and the influence of compensation schemes. Throughout the course, frameworks and decision-making tools will be introduced to guide in-class analyses and help individuals manage ethical dilemmas in their own workplaces.

Prerequisite: 29:390:329

Financial Statements and Security Analysis [29:390:340]

Techniques for examining and interpreting financial statements to support business and investment decisions. The viewpoints of short-term creditors, long-term lenders, equity investors, and internal management used as the focus of the analysis. Topics include ratio analysis, cash flow forecasting, and security valuation.

Prerequisites: 29:390:315, 29:390:329

International Financial Management [29:390:375]

Provides a comprehensive review of the international financial markets. Covers a survey of the organization of the international financial markets and institutions, such as the international banking system, equity, and bond markets. The course provides the theoretical underpinnings as to how the structure of the international capital markets impacts the price of financial securities and exchange rates.

Prerequisite: 29:390:329

Futures and Options [29:390:386]

Introduction to derivatives-futures and options contracts on commodities, interest rates, and equities. Historical development, institutional features, and economic functions of the futures and options markets. Pricing of the contracts. Understanding the role of expectations, arbitrage, and the relationship to their cash market counterparts. Analyzing risk exposures and exploring the hedging and speculative potential of the markets. Implementing and evaluating hedges in commodity, interest rate, and equity markets.

Prerequisite: 29:390:329

Treasury Management [29:390:440]

This elective course introduces how a Corporate Treasurer manages the finances of a business along with supporting the supply chain component of a business through various supply chain finance concepts. The course will take an in-depth look at firm’s working capital, domestic and international cash management, financial risk, receivables/payables and inventory, debt and investment, capital structure, cash forecasting, technology in the treasury area, and ethical issues. There will be case studies reviewed in the class that that discuss the use of various treasury techniques. Treasury The various subjects taught in this class will be taught by a Treasury Practitioner who has extensive experience in all of the various topics. For all of the topics discussed the students will be provided actual business experiences that provide a clear understanding of the material.

Prerequisite: 29:390:329 (Finance)

Advanced Corporate Finance [29:390:450]

Complex corporate securities, such as callable and convertible debt or adjustable rate preferred stock, option theory, corporate insurance, and hedging.

Analysis of Fixed Income [29:390:468]

Explores the investment characteristics, pricing, and risk/reward potential of fixed-income securities. The securities covered include bonds--with and without embedded options; mortgages and mortgage-backed securities together with their derivatives such as collateralized mortgage obligations (CMOs), income-only (IOs) and principal-only (POs) strips; interest rate swaps; and interest rate futures and option contracts. In addition, this course will explore the strategies for investing in portfolios of fixed-income securities.

Prerequisites: 29:390:315, 29:390:329

Security Analysis [29:390:470]

This course equips students with the skills and knowledge needed to analyze securities based on the foundations of value investing, which were first taught by Benjamin Graham and David Dodd, and later proven by Warren Buffett's enormous success.

Prerequisite: 29:390:329

Real Estate Capital Markets [29:390:476]

Real Estate Capital Markets focuses on debt and equity issues in secondary markets that derive their value from real assets. The course includes an overview of the US mortgage finance system, agency and non-agency residential mortgage-backed securities, structured mortgage products such as collateralized mortgage obligations, collateralized debt obligations and stripped securities, commercial mortgage-backed securities, Real Estate Investment Trusts and limited partnerships. Coursework involves basic fixed-income mathematics and cash flow modeling in Excel.

Prerequisites: 29:390:480

Real Estate Finance [29:390:480]

This course provides the background and tools necessary to analyze value, risk, and return in commercial property markets. The initial emphasis of the course is on mortgage finance and applications; providing an overview of mortgage structure and mechanics in both residential and commercial markets. The focus then shifts to the evaluation of investment opportunities in property markets from the perspective of an institutional investor. Students will use lease and market information to develop pro forma cash flow projections for a given property and evaluate the associated risks and returns. Extensions include tax issues, the relationship between value, returns and leverage, partnership agreements and/or real options. The course also provides extensive training and certification in ARGUS, a real estate industry-standard software package used for entering and compiling lease information.

Prerequisites: 29:390:329 or 21:220:439

Finance Cooperative Education [29:390:490]

Three credits will count towards finance elective credit, and 3 credits will count toward free elective credit. Internship program for six months (January to June, or June to December) at a participating corporation. Must complete the Coop Form and consult with an RBS Career Management Specialist to receive credit. Evaluations by corporate supervisor in the participating organization and an RBS Career Management Specialist determine final grade in the course.

Prerequisites: 29:010:204, 29:390:329, 29:620:300, 29:630:301, and junior standing

Pension Fund Management [29:390:494]

The course describes and analyzes the different retirement vehicles provided by business for employees. In particular, the course describes and analyzes in details the major differences in defined benefit and defined contribution plans, including the tax aspects.  Topics also include paths for personal retirements. 

Prerequisites: 29:390:315, 29:390:329

Special Topics in Investment Banking [29:390:495]

Examines the role of investment banker as a financial intermediary, in the areas of financing, issuance of securities, and merger and acquisitions. The course will also cover the art of negotiations and new financial developments. The class is separated into groups for casework. The main purpose of the cases is for the student to learn how to apply theoretical financial concepts to real problems corporations have faced.

Prerequisites: 29:390:315, 29:390:329

Finance Internship (BA) [29:390:496]

On-site finance position in a corporate or not-for-profit organization.  By arrangement with the Career Development Center and a RBS Career Management Specialist.

Prerequisites: 29:010:204, 29:390:329, 29:620:300, 29:630:301, and junior standing

Independent Research in Finance [29:390:498]

Individual research and reading program under the guidance of a member of the department. Prerequisites: Permission of instructor and department chair or dean's office, and senior status.

Notes: The prerequisite course for Treasury Management (29:390:440) is Finance (29:390:329)

Financial Planning track

The financial planning track is designed to prepare undergraduate finance majors for an exciting career in financial advisement, where you are helping clients secure a solid financial future. Our program provides an approved, practical and theoretical approach to personal financial planning. Successful completion of this curriculum satisfies the Certified Financial Planner Board of Standards of education and assists you in taking the CFP Board Examination.

If you have an acumen for finance, strong interpersonal skills and a desire to be entrepreneurial, then this program is for you. Rutgers Business School’s strong ties with the financial services industry, and our nearness to New York City—the epicenter of the financial world—means our financial planning graduates leave with plenty of opportunities at their fingertips.

Why should you become a Financial Planner?

Simply put? There's a high demand and the field is booming with opportunity.

The financial planning and advising industry is projected to be one of the fastest growing job sectors over the next decade, with the U.S. Labor Department estimating it will grow by about 27 percent in the next five years. The demand for these services is high, especially as an aging population seeks assistance to plan for retirement. Further, the field provides ample opportunities for self-employment, or employment at leading financial services firms.

Further, pursuing the financial planning track as a finance major at Rutgers Business School will prepare you for earning your Certified Financial Planner (CFP) designation because it satisfies the educational requirement for the certification. To become a CFP, you must pass an exam approved by the CFP Board of Standards which covers over 175 topics in investing and financial planning. Increasingly, financial planners are expected to have CFP credentials, and our program will help you get there.

How to Apply

Curriculum

The financial planning track is available to Newark undergraduate finance majors at Rutgers Business School-Newark. The track is made up of 7 courses (21 credits) in addition to core undergraduate business requirements.

Required (21 credits)

Investments [29:390:315]

Introduction and analysis of the dimensions of risk and return. Portfolio theory and its application in the management and performance evaluation of investment portfolios. Equilibrium theories of risk and return-capital asset pricing model and the arbitrage pricing model. Interest rate theory, yield curve, linkage between short-term and long-term rates, credit risk, and interest rate risk. Analysis of individual securities: money market securities, bonds and mortgage-backed securities, common and preferred stocks, and derivatives-futures and options.

Prerequisite: 29:390:329

Financial Institutions & Markets [29:390:370]

Detailed overview of the theory and institutional features of the U.S. financial system; comprehensive review of the U.S. financial markets.

Prerequisite: 29:320:329

Financial Planning/Insurance [29:393:341]

This course is an introduction to the concepts and profession of personal financial planning. Topics in the course include the financial planning process, securities regulation and licensing, CFP Board ethics, the economic environment, and planning for special situations such as a college education, the formation and operation of a closely held business, and disability. The course also previews wealth accumulation, tax, retirement, and estate planning techniques.

This course also considers risk management principles and the various types of insurance coverage in the marketplace today, focusing on the role of planning for insurance needs. Insurance topics include life, medical, and property/casualty policies, as well as long-term care and disability. It also covers benefits made available to employees by employers—commonly referred to as employee or fringe benefits. Employee benefit topics include group policies, deferred compensation, equity-based compensation, and business applications of life insurance.

Prerequisites: 29:390:329 - Finance;  29:390:315 - Investments

Estate Planning [29:393:466]

Once the wealth accumulation process is complete, distributing excess wealth is a primary goal for many financial planning clients. Students are exposed to estate planning techniques such as lifetime transfers and gifting, charitable gifting, the utilization of trusts and partnerships, and postmortem planning. The course emphasizes solving a client’s estate planning problems by providing students with the tools to develop practical strategies that focus on a client's goals and objectives and apply current tax law to develop an effective estate plan.

Prerequisites: 29:390:329 - Finance;  29:390:315 - Investments

Retirement Planning [29:393:467]

This course explores the nature and function of retirement plans and surveys the more common employee benefits companies offer today. The course outlines the various retirement plans available including government and private plans, pension plans, individual retirement accounts, and other qualified and non-qualified retirement plans. Students learn to determine a client’s eligibility to participate in a retirement plan, calculate a client’s tax deductible contribution limits, and calculate the taxation of retirement plan benefits upon distribution. The course includes a complete needs analysis to determine a client’s expected monetary needs and the associated cash flow required in a client’s retirement years.

Prerequisites: 29:390:329 - Finance;  29:390:315 - Investments

Taxation Issues Affecting Financial Planning [29:393:469]

This course discusses effective income tax planning strategies, whether personal or related to clients' business interests. Underlying the content will be discussions on the fundamentals of individual income taxation, tax implications of various types of businesses, planning for the acquisition and disposition of property, tax-advantaged investments and tax planning for the family. The course walks students through personal income tax calculations and the ramifications of taxable transactions. Students work through practical scenarios including calculating taxable income, exclusions and deductions, depreciation and amortization schedules, the alternative minimum tax, and real estate and business sales and exchanges. Students will learn how to integrate a client’s financial goals and objectives into a well-developed tax strategy within the context of a comprehensive financial plan.

 Prerequisites: 29:390:329 - Finance;  29:390:315 - Investments

Capstone: Developing a Financial Plan

The emphasis in this course is on the applications of financial planning concepts in an integrated planning environment. This Capstone course utilizes case studies to tie together the various disciplines studied in the various financial planning courses into a comprehensive financial planning process. The case-study format differs from the traditional lecture format in that students take a more active role in the learning process. Students complete several segmented financial planning cases related to insurance, investing, taxation, retirement planning and employee benefits, and estate planning. Students develop both basic and complex comprehensive financial plans by following the six-step financial planning process. Students complete individual and group work and participate in the presentation of a comprehensive financial plan to the class. This experience serves as a model for application as a professional.

Prerequisites:  29:390:329 - Finance;  29:390:315 - Investments

Real Estate Track

The undergraduate Finance major with an emphasis in Real Estate in the Rutgers Business School on the Newark campus offers a curriculum balanced between theory and practice, providing students with the concepts and skills that are key to establishing a successful career in real estate. This new program allows students to acquire a rigorous education and expertise in real estate. Students completing the track will receive an undergraduate degree in Finance.

This new track is designed for students with a specific interest in real estate and real estate related assets; providing training in the development, investment, financing and management of real estate projects. While the basic concepts and tools used to assess value and risk in real estate markets are identical to those used in the broader financial markets, investment in property markets requires evaluation of assets that are heterogeneous and where transactions are negotiated on an asset-by-asset basis rather than traded on exchanges. Furthermore, activity in real estate markets is characterized by entrepreneurial activities such as development, property management and asset management, which are not typically required when investing in more standardized financial products.

The track consists of seven courses. Four courses, Real Estate Finance, Real Estate Law, Development and Investments, form the track prerequisites. Students then choose three electives from four additional courses, Real Estate Capital Markets, Market Analysis, Feasibility and Valuation, Real Estate Management, and Analysis of Fixed Income Securities. The set of electives will expand in the future if there is sufficient student demand for the program.

The principal method of teaching employed in the core courses is a lecture-based format supplemented with case studies. More advanced coursework will emphasize case studies and project work and will include extensive exposure to the real estate industry through guest speakers.

Career opportunities in commercial real estate

The real estate industry offers a wide variety of career paths in a range of commercial sectors – Investment Analyst, Asset Management, Development, Corporate Real Estate Management, Commercial and Residential Brokerage, Appraisal, Commercial and Investment Banking, Property Management and Mortgage Brokerage.

Curriculum

The concentration track consists of 7 courses (21 credits) in addition to satisfaction of the core undergraduate business requirements.

Preliminary RBS core requirement:

Course number

Title

Credits

29:390:329

Finance

3

Real Estate track prerequisites (12 credits):

Course number

Title

Credits

29:390:315

Investments

3

29:851:350

Real Estate Law

3

29:390:480

Real Estate Finance

3

29:851:432

Development

3

Real Estate track electives (9 credits, choose 3):

Course number

Title

Credits

29:390:476

Real Estate Capital Markets

3

29:851:460

Property Management and Real Estate Investment Management

3

29:851:430

Market Analysis, Feasibility and Valuation

3

29:390:468

Analysis of Fixed Income Securities

3

Suggested course sequence

Year

Semester

Course number

Title

Sophomore

Spring semester

29:390:315

29:851:350

Investments

Real Estate Law

Junior

Fall semester

29:390:480

Real Estate Finance

 

Spring semester

29:851:460

Property Management and Real Estate Investment Management

Senior

Fall semester

29:851:432 or 29:390:468

29:851:430

Development or Analysis of Fixed Income Securities

Market Analysis, Feasibility and Valuation

 

Spring semester

29:390:476

Real Estate Capital Markets

The Rutgers Center for Real Estate

Students enrolled in the Real Estate track will have unparalleled access to industry leaders through the newly created Center for Real Estate Studies. The Center is supported by a 90+ member advisory board consisting of the most influential and innovative real estate firms in the New York/New Jersey metropolitan area. Board members will serve as guest speakers, mentor students and hire Rutgers graduates. Members of the Advisory Board include CEOs and senior executives at Prudential Real Estate Investors, Canoe Brook Management, Hampshire Real Estate, Jacobs Development, Paul V. Profeta and Associates, AvalonBay Communities, CBRE, Cushman & Wakefield, Prologis and many other top-tier firms. The Center will also provide mentoring, internships and career opportunities in the real estate profession.