Records and Registration

Spring 2006 Courses Offered By Stern School of Business


Course ID Lottery Call # Drop/ Add Call # Title Faculty Cr
------- 55425 Monetary Policy Banks & Center Banks Wachtel, P.* 3.0 
  55423 Developing Financial Institutions & Markets Sylla, R. 3.0
  55424 Developing Financial Institutions & Markets Sylla, R.* 3.0
  55426 Corporate Finance Schmeits, A. 3.0
  55427 Corporate Finance Mueller, H* 3.0
  55428 Corporate Finance Mueller, H.* 3.0
  55429 Corporate Finance Kallberg, J.* 3.0
  55430 Corporate Finance Kallberg, J.* 3.0
  55432 Investment Banking Froewiss/ Murphy* 3.0
  55433 Venture Capitalism Finance Smith, R.*
  55434 Mergers & Acquisitions Amihud, Y. 1.5
  55435 Behavioral Finance Wurgler, J.* 3.0
  55436 New Venture Financing Ljungqvist, A. 3.0
  55437 Global Banking & Capital Markets Smith, R. 3.0
In addition to the above courses, Restructuring Firms and Industries is a cross-listed course that can be found in the Corporate and Commercial Law area of our Schedule of Classes.

Registration begins December 1- and ends January 15.

* Evening courses begin and end later in the semester than law school courses.
Law school students who enroll in evening courses will not be allowed to drop the course.

The Law School awards credits based on the number of hours per week that a course is offered. Stern courses have insufficient meeting hours for the Law School to award 3 or 4 credits. To compensate for the shortfall in meeting hours law students must now attend a special lecture that is currently being created. The lecture will take place in the Law School on a date and time to be announced. To receive the FULL number of Stern credits offered students MUST attend this special lecture.

Course Descriptions

B30.2333.30 Monetary Policy Banks & Center Banks
Prerequisite B01.1303 Firms & Mkts.  3 credits      
The structure of the financial system and the role of central banks are often in the news as countries cope with banking crises and macroeconomic problems.  Monetary Policy, Banks and Central Banks is an MBA elective course that examines the structure of financial systems from both perspectives.   Several broad questions are addressed over the course of the semester such as Why is monetary policy important? How is monetary policy conducted?  How does monetary policy affect the macro economy?  Why and how do countries regulate the financial sector?  Why is Alan Greenspan so close to god and who will succeed him?  These questions, among others, are discussed with a combination of lecture, discussion and student presentations.

B30.2392 Development of Financial Institutions and Markets   
Prerequisite: B01.2311 Found of Finance or L03.3020 Corporate Finance. 3 credits.
Study of the historical development of financial institutions and markets, in a comparative international context with emphasis on the USA. Covers monetary, banking, central banking, and securities market history, as well as pertinent aspects of the history of government finance and the emergence of corporations as a dominant business form. Topics include the emergence of modern financial systems in history, including the roles of public finance and stable moneys, as well as banking, central banking, and securities and insurance markets; the composition, growth, fluctuations, and determinants of the money stock; the development of banking systems and their regulation; the emergence of central banking; monetary policies; major trends and fluctuations in stock, bond, and money markets; and the history of financial crises.

B40.2302  Corporate Finance
Prerequisite: B01.2311 Found of Finance or L03.3020 Corporate Finance.  3 credits.
This introductory corporate finance course considers a broad range of issues faced by corporate financial managers. The first part of the course focuses mainly on investment policy and project valuation ("How much is a project worth and which projects should I pick?"). The second part of the course focuses on financing decisions like capital structure policy and pay out policy ("Should I finance projects with debt or equity, should I pay investors through dividends or share repurchases?"). We also address the impact on the firm of agency costs and asymmetric information, corporate governance issues and the market for mergers and acquisitions. The course will be partly case-based, with about 65% lectures and 35% cases.

B40.2334 Investment Banking
Prerequisite: B01.2311 Found of Finance 3 credits.
A broad overview of the role of investment banking in modern societies. What functions are performed; how are these tasks carried out in competitive and noncompetitive environments? Concepts such as origination, syndication, distribution of security issues. Pricing of new issues and the management of issues in the after markets. The role of investment bankers in restructuring industry, financing governments, and facilitating saving and investment. Ethical issues investment bankers must face are considered.

B40.3173.30 Venture Capital Finance
Prerequisite:  B01.2311, Found of Finance or equivalent.  3 credits
This is a half term course that offers an overview of financial issues affecting venture capital.  By “venture capital” investments we mean, in essence, high-risk/high-reward opportunities.  These are often associated with small and rapidly growing ventures.  The course is case-oriented and aims at instructing the student in how “real-world” professional investors and corporate managers operate to create wealth from such situations.  The course should be useful to those seeing careers in venture capital or private equity investing, or in senior management positions of entrepreneurial corporations.

B40.3196        Mergers and Acquisitions
Prerequisite:  B01.2311 Found of Finance or L03.3020 Corporate Finance.  1.5 credits.
This course will present the theories and empirical evidence on corporate control transactions, the process of evaluating acquisition targets and its application in practice. Findings on the reaction of stock prices to information on control transactions will be used to analyze the effects of various policy options in such transactions. Strategies of acquisition will be studied as well as defensive measures against them, their purpose and their consequences.  The class will combine lecture material, quantitative and qualitative analyses and discussions of relevant news. There will be an emphasis on fundamental concepts of valuation and other areas of corporate finance related to M&As.

B40.3329.30     Behavioral Finance
Prerequisite:  B01.2311, Foundations of Finance or equivalent.  3 credits
Examines the causes and effects of inefficient stock and bond markets.  Topics covered include a review of theory and evidence of efficient securities markets, empirical facts that do not fit the efficient market paradigm – bubbles, valuation ratio spreads, momentum, and market timing issues; closed-end fund discounts; limits on arbitrage that allow mispricings to persist; and aspects of investor psychology that may be behind observed phenomena.

B40.3373.30     New Venture Financing
Prerequisite:  B01.2311 Foundations of Finance.  3 credits
This is a full-term course that focuses on financing entrepreneurial companies, especially start-up and early-stage ventures. Investing in such ventures is characterized by very high degrees of uncertainty and complex asymmetries of information between investors and the entrepreneur which can lead to misalignment of incentives and conflicts of interest. The twin aims of the course are for students to learn how to make investment decisions in these situations (i.e. which opportunities to pursue and which to pass up) and how to structure the terms of the investment in such a way as to cope with uncertainty and reduce conflicts of interest arising due to asymmetries of information.  The first aim requires you to master tools for screening investment opportunities in the absence of much ‘hard’ financial data. The requisite ‘opportunity recognition’ tools mainly draw on finance, strategy, and the economics of industrial organization. A good example is the importance of barriers to entry for achieving sustainable profit margins. The second aim requires you to develop an understanding of contract and deal design. For instance, deals are often structured in such a way as to make the valuation paid by the outside investor contingent on the subsequent performance of the venture (using options etc.).  At the end of the course, you should be able to demonstrate that you can make intelligent investment decisions regarding highly risky entrepreneurial ventures, and can structure investments with a view to incentivizing and motivating the entrepreneur while minimizing the investor’s downside risk.

B40.3387 Global Banking and Capital Markets
Prerequisite: B01.2311 Foundations of Finance.  3 credits
Analysis of the competitive performance and strategic positioning of financial institutions in multinational capital markets. Market segmentation theories are applied to markets for syndicated lending, trade finance, project financing. Considers international aspects of raising capital in multinational, multiregulatory settings. Examples may include mergers and acquisitions, joint venture capital projects, government or private partnership projects.

B30.2345.30 Telecomm Econ & Digital Con
Prerequisite B01.1303 Firms & Mkts. 3 credits
This course analyzes the economics of telecommunications, the Internet, and related industries, including cable television. We study in-depth the economics of monopoly and oligopoly as applied to network industries, including to telecommunications markets and the Internet. We study key strategic decisions of companies in network industries. We analyze a firm's decision whether to provide products that are compatible with those of competitors, or to engage in technical standards wars such as VHS vs. Beta in video players, Windows vs. Mac vs. Linux in operating systems for PCs, MP3 vs. WMA vs. RealAudio in digitized music, and HD DVD vs. Blu-Ray . Among others, We discuss technology transitions in information delivery with particular application to electronic music delivery and video delivery through Netflix. In telecommunications, we study the evolution of the industry, paying special attention to the crucial antitrust intervention that resulted in the 1981 breakup of AT&T and to the reform attempted by the Telecommunications Act of 1996. We discuss traditional telecommunications markets, including long distance, local, and international; "new" telecommunications markets including cellular and PCS; and "emerging" telecommunications markets based on the Internet ("VOIP"), as well as and electronic commerce. We analyze the current wave of mergers and consolidation in the industry from the perspective of "digital convergence" and predict the framework and direction of industry change. We also discuss antitrust and public policy issues in network industries, focusing on the Microsoft antitrust case among others.