Colgate Finance ClubSunday, September 14th 2014

Welcome! Basics About the Club

“CFC is designed to expose undergraduate liberal arts students to the possible career opportunities in Finance. We hold five mandatory meetings throughout the semester, as well as a number of guest speakers, and other finance-related opportunities.”

Basics About the Club

Attend 3 out of 5 meetings in order to write “Colgate Finance Club Member” on your resume

Schedule and additional information can be found online at colgatefinanceclub.com (just Google “Colgate Finance Club”)

Also check your email for updates and recruiting notices!

Schedule

All meetings at 1pm in Persson Aud. ** unless otherwise instructed

Also posted on the website

Leadership Structure

President – Tyler Forbes

Vice President – Mimi Kornfeld

Senior Advisors – Grant Riegler

John Rapisardi

Executive Board:

Ryan Groffie Ritvij Basant Jack Sneeringer

Haley Shaughnessy

Mitch Cooney Kristina McNamara

Mike McCluskey

Finance – What is It?

1. A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Simply, finance deals with matters related to money and the markets.

2. To raise money through the issuance and sale of debt and/or equity.

Three Core Areas of Finance

Public Finance

Corporate Finance

Private Finance

Public Finance

Public finance describes finance as related to sovereign states and sub-national entities (states/provinces, counties, municipalities, etc.) and related public entities (e.g. school districts) or agencies. It is concerned with:a. Identification of required expenditure of a public sector entity

b. Source(s) of that entity’s revenue

c. The budgeting process

d. Debt Issuance (municipal bonds) for public works projects

Central banks, such as the Federal Reserve are strong players in public finance, acting as lenders of last resort and strong influencers on monetary and credit conditions in the economy

Corporate Finance

Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources

Balance between risk and profitability

Maximize entity’s wealth and stock value

Capital budgeting on projects

Sources of capital: equity, creditors (debt), bonds, and cash flow

Investment management, valuation, risk, etc…

Private Finance

Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance, e.g. health and property insurance, investing and saving for retirement.

6 key areas of personal financial planning:1. Financial Position – net worth and household cash

flow

2. Adequate Protection – unforeseen risks

3. Tax Planning

4. Investment and Accumulation Goals

5. Retirement Planning

6. Estate Planning

Time Value of Money

A key point in finance is the time value of money, which states that purchasing power of one unit of currency can vary over time.

Finance aims to price assets based on their risk level and their expected rate of return.

For example, assuming a 5% interest rate, $100 invested today will be worth $105 in one year ($100 multiplied by 1.05). Conversely, $100 received one year from now is only worth $95.24 today ($100 divided by 1.05), assuming a 5% interest rate.

Careers in Finance

Corporate Finance

Commercial Banking

Investment Banking

Hedge Funds

Private Equity and Venture Capital

Financial Planning

Insurance

Public Accounting

Consulting

Finance at Colgate (tips)Be Pro-Active.

Use resources such as Career Services, professors, upperclassmen, alumni, and informational events

Develop a resume and personal elevator pitch

Actively use and update your LinkedIn profile

Increase your knowledge of financial markets through weekly publications (Barron's, WSJ, etc.) and books

Attend company info sessions on campus to gain an understanding of the recruitment process and firms' expectations of you

Network, network, network

CIG Portion of the Meeting

Current Events/News Portion

The End

Thank You!

Remember to:Check out colgatefinanceclub.comWatch out for emails/updates (from

financeclub@colgate.edu)Next meeting is September 28th !!! Guest Speaker!