Navigating the Path to a Finance Major at UCLA
UCLA offers a robust academic environment for students aspiring to careers in finance. The curriculum is designed to provide a strong foundation in financial theory and practice, preparing students for diverse roles in the financial services industry. This article outlines the key aspects of pursuing a finance major at UCLA, including preparatory coursework, relevant programs, and career opportunities.
Foundational Coursework and Preparation
For prospective finance majors, particularly transfer students, completing lower-division preparatory courses is a critical step in the admission process. While specific prerequisites may vary, demonstrating academic interest through related coursework is essential. The College of Letters and Science provides a list of majors with links to lower-division preparatory courses, encouraging students to complete as many as possible before transferring.
California community college students are encouraged to complete the Intersegmental General Education Transfer Curriculum (IGETC), while other transfer students should make progress toward completing UCLA's general education requirements. Completing major preparation courses first, followed by strongly recommended or additional courses, is advised.
For students interested in Business Economics, Mathematics/Economics, or Mathematics, Financial Actuarial, specific lower-division preparatory courses are recommended. Students are classified as pre-majors until these courses are completed at UCLA. Admission to some majors, including those listed above, is highly selective due to high application volume.
Curriculum and Course Offerings
UCLA Anderson School of Management's finance faculty are renowned experts in various aspects of the field, including asset pricing, derivatives, micro-structure, corporate finance, and investment finance. Their research has influenced policy and practice worldwide, with applications in valuing securities, hedging activities, and determining interest rates.
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UCLA Anderson offers a variety of courses in finance, enabling students to acquire the knowledge necessary for careers in corporate finance and investment management. These courses cover a broad range of topics, including:
- Financial Statement Analysis: In-depth treatment of significant corporate financial reporting issues to enhance understanding of financial statements and student ability to interpret and use information contained in these disclosures.
- Corporate Finance: Consideration of a broad range of issues faced by corporate financial managers, including the analysis of a firm's investment and financing decisions and the impact of agency costs and asymmetric information.
- Valuation: Issues and analytical tools relevant for valuing projects, divisions, and corporations. Theories of discounted cash flow valuation (DCF) and relative valuation using market multiples. Theories of practice to value different projects, including IPO, mergers and acquisitions, divestitures, and private firms.
- Mergers and Acquisitions: Process by which corporate control transactions take place; role of the market for corporate control in leading to economic restructuring and shifts in resource allocation by corporations. Empirical evidence on economic and capital market reactions to control transactions and to defensive measures by management. Study of mergers and acquisitions through the use of empirical studies.
- Entrepreneurial Finance and Venture Capital: This course studies how to finance and scale a high-growth business or start-up, ranging from seed to later stage. The goal is to help students make better financial decisions, both as entrepreneurs and as venture capital and private equity investors. Through a combination of lectures and readings, we will develop financial models aimed at understanding deal structures, valuation, and investment decisions within the start-up context. Then, we supplement and apply these concepts using a variety of case studies with firms at all stages of their life cycle. Use of cases to study entrepreneurial finance and venture capital. Analysis of issues faced by entrepreneurs who are setting up new firms, as well as decisions of private equity partnership managers and investors. How transactions are structured and why investors and entrepreneurs choose certain contractual arrangements. Development of understanding for the institutional context of private equity finance.
- FinTech: This course develops an in-depth understanding of “FinTech”, i.e. the opportunities (and challenges) at the intersection of finance and technology. We will study current topics in DeFi (crypto, tokens, exchanges), as well as how Artificial Intelligence, Big Data, Machine Learning, and the Cloud are changing the finance industry.
- Financial Markets: This course begins by introducing the basics of financial market infrastructure and the mechanism of price formation and discovery. We emphasize the role of broker-dealers in resolving frictions and facilitating an efficient market. Then, through case studies and practical examples, we reflect on how recent technology developments have reshaped the trading market, resulting in various new market phenomena. Specific topics covered in the course include payment for order flow, decentralized exchange, short squeezes, bubbles and crashes, the rise of passive investing, and mutual fund runs.
- Portfolio Management: This class teaches how to manage a large portfolio of assets and to knowledgeably select and monitor of someone who does so for you. We study how to build a portfolio that optimally uses one’s limited capacity for bearing risk, how to choose actively and passively managed investments, and how to measure their performance. Topics other than portfolio optimization include the measurement of alpha, the production of alpha and the underlying economics of alpha production. Please note that this is not a stock-picking class. We are not in the business of identifying over-or undervalued assets. equities markets. Presentation of some paradigms of stock price movements that are rooted in studies from psychology and explanation of trading activity in equity risk-return paradigm. Introduction to some psychological biases that researchers suspect are inherent to investors. Employment of some results from psychology literature to explain irrationalities encountered in finance literature.
- ESG (Environmental, Social, and Governance) Investing: This course focuses on ESG (environmental, social, and governance) issues relevant to corporate managers and investors. The last few years have seen these issues rise to the forefront of corporate and investment decisions. By taking the point of view of major decision-makers in this process (shareholders, managers/directors, lenders, regulators, and community-members), we build a comprehensive picture of this radical change in the business world. We will cover various frameworks for measurement, valuation, and opportunity and risk assessment, with emphasis on recent changes in the ESG landscape. The course can serve as a stand-alone introduction to ESG or as a foundation for other ESG/sustainability courses offered at UCLA. The course also counts towards several specializations and certificates, including Social Impact, Leadership in Sustainability, Global Management, Finance, and Accounting, and the international course requirement for FTMBA students.
- Data Analysis: Goal is for students to become more comfortable with design, execution, and interpretation of data analysis that can meaningfully inform business strategy formulation. Pedagogical approach is firmly rooted in learning by doing.
Finance Certificate Program
UCLA Extension offers a five-course Finance Certificate program designed to meet the market need for qualified financial professionals. Taught by industry experts, this program covers how banks and other financial institutions operate in a globalized economy. The curriculum provides a thorough understanding of accounting standards and principles, preparing students for the Certified Public Accountant (CPA) Examination.
Additional Programs and Courses
UCLA Extension provides a variety of programs and courses related to finance, including:
- Accounting Fundamentals: Gain essential skills needed to be a successful bookkeeper, including accounting principles, payroll fundamentals, and QuickBooks.
- Corporate Financial Planning and Budgeting: Learn the latest methods and tools for business valuation, corporate budgeting, and financial forecasting in order to evaluate and recommend strategic financial decisions for your business.
- Taxation: Learn tax laws, tools, and procedures from instructors who have worked or currently work for the IRS.
- Advanced Accounting: Take the next step in your accounting career with skills in financial statements, cash flow, and CPA exam prep.
- Internal Auditing: Build the skills necessary to meet the growing demand for qualified internal auditors.
- MBA Preparation: Provides aspiring MBA students a solid foundation of business tools, concepts, and practices that are an essential part of most Master of Business Administration programs.
- Financial Analysis Modeling: Develop a deeper understanding of how to analyze and interpret financial data, using industry-leading tools to create advanced analysis modeling.
- Real Estate Taxation: This course is designed for professionals working in the real estate industry interested in tax issues associated with real estate transactions.
- Digital Asset Transactions: This online course prepares legal and tax professionals to plan, analyze, and implement compliant reporting for digital-asset transactions under current IRS rules.
- Estate Planning: This class is designed to provide households with a basic understanding of the options, resources and steps needed in Estate Planning to protect your assets and provide for your loved one.
- International Financial Management: This course provides an introduction to the environment and tools of international financial management.
- Financial Literacy: Money That Lasts is a hands-on, family-centered course designed to help parents and children learn the essentials of financial literacy, starting at age 4 when children are learning at a rapid pace. Utilizing stories, games, interactive lessons and guided conversations.
Career Opportunities
A finance major from UCLA opens doors to a wide range of career opportunities in various sectors of the financial services industry. According to data, a significant percentage of UCLA Anderson students are hired into financial services industries, including investment banking, investment management, and private equity and venture capital. These graduates find employment in firms ranging from small boutique firms to large bulge bracket banks, located in cities across the country, including Los Angeles, San Francisco, and New York.
UCLA Anderson provides resources and support to help students prepare for and succeed in their finance careers. The Investment Finance Association (IFA) offers a platform for students to network with seasoned professionals, build a solid foundation of fundamental knowledge, and leverage connections to transition into desired roles. The Admissions Ambassador Corps (AAC) also provides guidance and support to prospective students, answering questions about their experiences at UCLA Anderson.
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Developing Essential Skills
Students interested in finance build a strong academic foundation in core finance concepts, including financial statement analysis, discounting and present values, valuation of bonds and stocks, and capital budgeting. They also develop essential skills such as:
- Mathematical Modeling: The finance industry needs people who possess deep mathematical modeling skills and computational expertise.
- Analytical Skills: The ability to analyze and interpret financial data is crucial for making informed investment decisions.
- Strategic Thinking: Finance professionals must be able to think strategically and develop effective business strategies.
- Communication Skills: Strong communication skills are essential for presenting financial information and interacting with clients and colleagues.
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