Programmes

Finance

  • Summer schools
  • Department of Finance
  • Application code SS-FM250
  • Starting 2020
  • Short course: Open
  • Location: Houghton Street, London

UPDATE: Due to the global COVID-19 pandemic we will no longer be offering this course in summer 2020. Please check our latest news on this situation here.  

You can still register your interest in this course for 2021 using the ‘Sign up’ button to the right.  

In this course, you will learn about the theory and application of Financial Securities and Corporate Finance. In three intensive weeks, you will explore financial instruments, such as equity, fixed income and derivative securities, as well as key concepts in Corporate Finance.

In Part 1: Asset Markets you will gain an integrated view of three important asset classes - fixed income securities, stocks and derivatives.

Fixed-income securities - such as Bonds - are used by governments and companies to raise finance. Our exploration of Stocks will build your knowledge of the key concepts of risk, return, diversification and portfolio theory, and the Capital Asset Pricing Model (CAPM) for describing the relationship between systematic risk expected return. We will look at market efficiency theory, and consider whether the market values stocks efficiently, or whether it is possible to “beat” the market to make abnormal returns leading to large profits. 

You will also build an understanding of derivative instruments like forwards, futures, options and swaps, and their application in trading.

In Part 2: Corporate Finance you will gain an understanding of how firms analyse and decide which investment opportunities they should pursue, as well as the various options for raising the necessary funds to finance those investments.

On completion of the course, you will have a deeper understanding of how firms choose their capital structure, the conflicts between shareholders and debt holders that influence how firms are run, and incentives to adopt riskier strategies as a function of overall leverage.


Session: One
Dates:  22 June – 10 July 2020
Lecturers: Dr Dong Lou and Dr Georgy Chabakauri


Session: Three
Dates: 3 August – 21 August 2020
LecturersDr Ashwini Agrawal and Dr Thummim Cho

(Due to popularity, this course is repeated and can be taken in either of the sessions outlined above.


 

Programme details

Key facts

Level: 200 level. Read more information on levels in our FAQs

Fees:  Please see Fees and payments

Lectures: 36 hours 

Classes: 18 hours

Assessment*: One examination and one essay

Typical credit**: 3-4 credits (US) 7.5 ECTS points (EU)


*Assessment is optional

**You will need to check with your home institution

For more information on exams and credit, read Teaching and assessment

Prerequisites

Elementary quantitative methods or Introductory Microeconomics (to the level of EC101)

Programme structure

  • Net Present Value technique
  • Introduction to portfolio theory
  • The Capital Asset Pricing Model (CAPM)
  • Stock market efficiency
  • Forward and futures contracts, option pricing
  • Investment decisions and the significance of real options
  • Capital structure and dividend decisions
  • Capital restructuring: Initial Public Offerings 

Course outcomes

Students will learn about the theory and application of Financial Securities and Corporate Finance. The course broadly covers financial instruments, such as equity and fixed income and derivative securities, as well as key concepts in Corporate Finance. It will also enhance a student's understanding of how firms choose their capital structure, conflicts between shareholders and debt holders, pay-out policy, and initial public offerings.

Teaching

LSE’s Department of Finance enjoys a pre-eminent reputation for the excellence of their teaching and research, and for their leading role in public-policy issues. The Department of Finance has grown in recent years to become one of the largest and most highly-regarded finance groups in the UK and Europe.

LSE’s Department of Finance is closely associated with LSE’s Financial Markets Group and Systemic Risk Centre which regularly hosts a wide variety of seminars, conferences and public addresses by leading academics and practitioners. The Department, along with the Departments of Accounting and Management, was ranked as the UK leader for Business and Management Studies in the 2014 Research Excellence Framework. The Department’s excellence in research and world-class faculty set them apart as global leaders in the field of finance.

On this three-week intensive programme, you will engage with and learn from full-time lecturers from the LSE’s finance faculty.

Reading materials

R. Brealey, S. Myers & F. Allen, Principles of Corporate Finance, 13th edition, McGraw-Hill (2019)

Jonathan Berk, Peter De Marzo, Corporate Finance, Pearson International Edition (2007)

*A more detailed reading list will be supplied prior to the start of the programme

**Course content, faculty and dates may be subject to change without prior notice

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How to Apply

Related Programmes

Analysis and Management of Financial Risk

Code(s) SS-FM202

Fixed Income Securities, Debt Markets and the Macro Economy

Code(s) SS-FM225

Advanced Corporate Finance

Code(s) SS-FM350

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