Introduction to Finance: The Basics from Coursera

What's inside

Syllabus

Course Orientation

Module 1: Introduction to Finance

In this module, you will be introduced to three basic forms to organize a business based on the nature of the business and its financing needs. Examining the goal of financial business helps us to develop a concrete framework to evaluate a corporate manager’s financial decisions. The corporation organization form is widespread because it can solve problems facing big business, but it also incurs the agency cost. You will also learn about some strategies companies are using to mitigate the agency problem.

Module 2: Financial Statements and Cash Flow

In this module, you will learn the basics of financial statements. The balance sheet captures the assets, liabilities, and stockholders’ equity of a company. The income statement is used to show profit and loss. You will explore the link between these two financial statements. You will also learn how to derive cash flows from financial statements, and the sources and uses of cash flow.

Module 3: Financial Statements Analysis

This module is the application of financial statements. You will be introduced to the concept of standardized statements. You will learn how to conduct ratio analysis to evaluate the financial health of a company. In addition, you will use financial ratios to measure the liquidity of the company, the leverage of the company, the profitability of the company, and the asset management of the company.

Module 4: Time Value of Money

In this module, you will be introduced to the basic concepts about the time value of money: the present value, the future value, and the net present value. You will also examine the difference between the quoted interest rate and effective annual rate. Two explicit patterns of cash flow will be studied in detail: annuity and perpetuity. There are widespread applications of time value of money in our daily life and business valuation. Some examples include mortgage plan selection, pension plan choice, and investment decisions.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Covers common business financing structures, agency problems, and strategies to reduce agency costs

Develops the basics of financial statements that are useful in personal, business, and academic contexts

Provides foundational knowledge of the time value of money, present value, future value, and net present value

Requires financial knowledge or experience to complete successfully

Students should have basic mathematical knowledge to grasp the concepts taught in the course

The course does not require previous finance or accounting coursework

Reviews summary

Finance basics for enthusiastic beginners

learners say this beginner-friendly introduction to finance is easy to understand and informative. Professor Yang is praised for her clear and engaging teaching style. Students particularly value the real-life examples used throughout the course, which help them apply the concepts they learn. Overall, this course is highly recommended for beginners who want to gain a solid foundation in finance.

The course is well-structured and covers all the basics of finance.

"Very detailed and well-structured course. It covered all the basics of Finance."

"Well put together, concise and information packed."

"This was a great course with amazing access to the material and being able to have the option to save the course material for future reference is amazing too."

Professor Yang is praised for her clear and engaging teaching style

"The lecturer delivered the course very clear and well-explained."

"Professor XI YANG, es una muy buena comunicadora y enseña bien.Gracias "

"I'm very satisfied with this course. The explanations were concise, clear and really effective. I learned a lot."

The material is presented in a structured way, making it easy to understand.

"All materials are super clear. Examples are structured and easy to understand."

"It's my first course in the field of finance, and i am completly satisfied with the program and as well as the teacher. The explanations were very clear. "

"Excellent introduction to Finance course. I haven't seen any instructor who has delivered a more concise, robust and practical basic Finance course as Professor Xi Yang."

The course includes numerous real-life examples, making the concepts relatable and applicable.

"Really good course. Use of real life examples and simple language made the course quite interesting. "

"I particularly liked the real life examples the instructor used when discussing financial statements."

"Initially, I had difficulty understanding the instructor's accent, but later on, I became comfortable. The course is well presented and covers all the basic things very well!! DOES ITS JOB!"

The peer feedback system can be valuable, but it can also be time-consuming and unclear.

"Overall, I thought this course was strong and delivered the content described in the overview. I particularly liked the real life examples the instructor used when discussing financial statements. I do wish the instructor had taken more time to explain the formulas used in Module 4."

"This was a great course with amazing access to the material and being able to have the option to save the course material for future reference is amazing too. The homework and quizzes were nice. The only reason I am giving 4 stars is because of the peer evaluations."

"The course is very educational and have helped me in my my career however, I have issues with the peer grading submission assessment."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Introduction to Finance: The Basics with these activities:

Review: Financial Management and Risk Management by Mike Berry

Show steps

Expand knowledge through additional course materials and insights.

View Digital Marketing Fundamentals: From Strategy... on Amazon

Show steps

Read the designated textbook chapters.
Summarize key theories and concepts presented in each chapter.
Identify areas that need further research or clarification.

Review: Options, Futures, and Derivatives, 10th Edition by John C. Hull

Show steps

Get a head start on course materials by reading key literature.

View Options, Futures, and Other Derivatives 11th... on Amazon

Show steps

Read chapter 1-4
Take notes during reading, including key concepts, theories, and examples

Watch video tutorials on financial modeling using Excel

Show steps

Utilize video demonstrations to enhance practical skills in financial modeling.

Browse courses on Financial Modeling

Show steps

Identify reputable video tutorials on financial modeling using Excel.
Watch the tutorials and take notes on key concepts and techniques.
Practice applying the techniques learned in the tutorials.

Five other activities

Expand to see all activities and additional details

Show all eight activities

Solve practice problems on financial ratios and time value of money

Show steps

Strengthen understanding of these concepts through repetitive exercises.

Browse courses on Financial Ratios

Show steps

Access online or textbook practice problems.
Attempt to solve the problems independently.
Review solutions and identify areas for improvement.

Write a blog post about the time value of money

Show steps

Demonstrate understanding of time value of money and develop content creation skills.

Browse courses on Time Value of Money

Show steps

Research and gather information about the time value of money.
Write a blog post that clearly explains the concept, including examples and calculations.
Proofread and edit the blog post for clarity and accuracy.

Design a financial plan for a personal or professional goal

Show steps

Apply course learnings to real-world scenarios and develop financial planning skills.

Browse courses on Financial Planning

Show steps

Identify a specific financial goal and gather relevant financial information.
Research and analyze different financial planning strategies.
Design a comprehensive financial plan that outlines the steps to achieve the financial goal.
Present the financial plan and discuss the rationale behind the strategies.

Create a financial model for a small business

Show steps

Develop practical skills and strengthen theoretical knowledge in constructing financial models.

Browse courses on Financial Modeling

Show steps

Identify and gather necessary financial data
Construct a financial model using Excel or other financial modeling software
Analyze the financial model and generate insights
Present the financial model and findings

Volunteer at a financial literacy organization

Show steps

Develop interpersonal skills while reinforcing course learnings through teaching others.

Browse courses on Financial Literacy

Show steps

Research and identify financial literacy organizations in the local community.
Contact the organization and inquire about volunteer opportunities.
Attend volunteer training and prepare to teach financial literacy concepts to diverse audiences.
Participate in volunteer activities and share financial knowledge with the community.

Career center

Learners who complete Introduction to Finance: The Basics will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial analysts study the performance of companies through financial modeling and other techniques. They then make recommendations to maximize returns for investors. This course may be útil for financial analysts, as it helps build a foundation in financial ratio analysis, which is an essential skill for evaluating a company's financial health.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment bankers help companies raise capital and advise on mergers and acquisitions. This course may be useful for investment bankers, as it covers financial statement analysis and the time value of money, both of which are important concepts in investment banking.

See salaries and explore the career path for Investment Banker

Portfolio Manager

Portfolio managers oversee investments for individuals and institutions. This course may be useful for portfolio managers because it provides an introduction to financial statement analysis, which is used to assess the financial health of companies.

See salaries and explore the career path for Portfolio Manager

Financial Planner

Financial planners help individuals and families manage their finances. This course may be useful for financial planners because it provides an introduction to financial statement analysis and the time value of money, which are both important concepts for financial planning.

See salaries and explore the career path for Financial Planner

Commercial Lender

Commercial lenders evaluate and approve loans for businesses. This course may be useful for commercial lenders, as it provides an introduction to financial statement analysis, which is used to assess the financial health of companies.

See salaries and explore the career path for Commercial Lender

Insurance Underwriter

Insurance underwriters assess risk and determine insurance premiums. This course may be useful for insurance underwriters, as it provides an introduction to financial statement analysis, which is used to assess the financial health of companies.

See salaries and explore the career path for Insurance Underwriter

Auditor

Auditors examine financial records to ensure accuracy and compliance with regulations. This course may be useful for auditors, as it provides a foundation in financial statement analysis.

See salaries and explore the career path for Auditor

Tax Accountant

Tax accountants prepare and file tax returns. This course may be useful for tax accountants as it provides an introduction to financial statement analysis, which is used to assess the financial health of companies.

See salaries and explore the career path for Tax Accountant

Financial Advisor

Financial advisors help clients manage their investments and finances. This course may be useful for financial advisors, as it provides an introduction to financial statement analysis, which is used to assess the financial health of companies.

See salaries and explore the career path for Financial Advisor

Budget Analyst

Budget analysts create and manage budgets for organizations. This course may be useful for budget analysts, as it provides an introduction to financial statement analysis, which is used to assess the financial health of organizations.

See salaries and explore the career path for Budget Analyst

Cost Accountant

Cost accountants analyze and report on the costs of goods and services. This course may be useful for cost accountants, as it provides an introduction to financial statement analysis, which is used to assess the financial health of organizations.

See salaries and explore the career path for Cost Accountant

Forensic Accountant

Forensic accountants investigate financial crimes. This course may be useful for forensic accountants, as it provides an introduction to financial statement analysis, which is used to assess the financial health of organizations.

See salaries and explore the career path for Forensic Accountant

Management Consultant

Management consultants provide advice to businesses on how to improve their operations. This course may be of some use to management consultants as it provides an introduction to financial statement analysis, which is one of the tools used by management consultants to assess the financial health of organizations.

See salaries and explore the career path for Management Consultant

Actuary

Actuaries use mathematics and statistics to assess risk and uncertainty. This course may be of some use to actuaries as it provides an introduction to financial statement analysis, which is used to assess the financial health of insurance companies.

See salaries and explore the career path for Actuary

Economist

Economists study the economy and its effects on businesses and individuals. This course may be of some use to economists as it provides an introduction to financial statement analysis, which is used to assess the financial health of companies.

See salaries and explore the career path for Economist