Saturday, December 19, 2009

[MBA] Financial Management

Financial Management- one of the most feared subject among MBA courses,
taught by deputy dean, Prof Shamsheer
His teaching is more to applied financial theories to real world economy
as he assume his student had prepared the chapters before the class
This is a huge pressure especially to student without finance knowledge like me,
but
the positive side is it pushes me to prepare before the class to understand his lecture.
to me,
Fetching knowledge from knwledgible lecturer is more important than grades,
however,
Obtaining good grade in the killer-lecturer hand is a great satisfaction.. (nonsense time again ^_^)

"What is the positive impact of economy recession?"
people usually discuss about negative things during recession,
one of the positve thing is the rise of bond price.
Recession, productivity falls, demand falls, supply falls, interest rate drops
Bond price will increase which is reverse to share price.

"Impact of goverment printing $"
symptom of bankruptcy
Country printing money causing lots of $ after little goods,
inflation rise,
goverment interfere interest (INT) rate to rise,
INT rise, $ become lesser, inflation drops, (short term)
increase productivity to overcome short of goods which cause inflation (long term)

"Government stimulus plan inject $ into share market, discuss"
$ injected in to share market, financial assets increase, but NOT real assets
government anticipating on business activity to increase real assets,
IF only it works.. will it??

It may be a tough time picking up the financial definations and calculations,
but
risk and return, bond (warrant), stock, cost of capital is everything around us daily
At least it is what a normal ah pek will read in newspaper in kopitiam.
and at least i should know what the ah pek is reading/talking
Learning is fun!

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