1 how many people learn finance first time.
2 talk about his sons story.
3 motivation personal
time and risk two important fact
six principles
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4 mathematics + $$$ = finance
5 three people james , Buffert Jack welch
the common point is understand of finance.
6 Labor Markets Product Markets Capital Markets Households Financial Internedianries Nonfinancial Corporational
7 valuation and management.. desition..
8 demostrion sale all peole don't know the value of the goods.
9 how valuation is done.
how are financial assets values?
how should financial assets be valued?
how do financial markets determine asset values?
how well do financial markets work?
10. Management
How much should I save/spend?
What should I buy/sell?
When should I buy/sell?
How should I finance the transaction?
Applies to both personal and corporate financial dicisions
11 Accounting
the language of finance
vocabulary , syntax, grammar, prose, and poetry
language frames and circumscribes the analysis
basic concepts should be familiar to you by now
stock VS. flow variables that is think about a bathtub and think about fauct turned on.
the stock is the leve of the water. the flow is how fast the water is coming into the tub.
12 There is no such thing as a free lunch
Other things equal, individulas: prefer more money to less(non-satiation);prefer money now to later(impatience);prefer to avoid risk(risk aversion)
All agents act to further their own self-interest
financial market prices shift to equalize supply and dermand