FIN 605 – Financial Management in Organizations – Week 4

Week 4 – Fixed Income Securities and Common Stock Securities – Valuations

We learned how to value bonds and common stocks and I learned a lot about bonds especially. It’s always been an unknown for me, but now I can calculate the value based on interest rates and how yields work. The latter always confused me especially but now that I understand the ratio it makes sense. We also talked about required rates of return and how those figure into valuation. Honestly a piece of me wants to just jump into Finance as a quantitative analysis, but I don’t foresee that happening in this stage of my career. I did watch “The Big Short” this week, a movie I didn’t care to see but now that I know how the market works more I found it very interesting. I should add also, I did not realize how much the 2008 financial crisis changed things, and I found myself taking a mental detour down this sad moment in history.