CRICOS No. 00213J

1
CRICOS No. 00213J
2

• School of Economics Finance
• Orientation Presentation
• Room Z401
• Level 4 Z Block

3

• Studying Economics and Finance at QUT
• Presented by Prof Tim Robinson, Head of School

4
Economics and Finance at QUT

• Dynamic rewarding professional careers
• Quality of our program
• Balance theoretical insight practical
  application
• Quality of our staff
• Research involvement
• Close working relationship with industry,
  professional bodies and government
• Access to latest technology for up-to-date skills
  knowledge
• - Securities Dealing Room

5
Economics and Finance at QUT

• Graduate employment opportunities
• Banking Finance Industry
• Other commercial firms
• Public accounting practices
• Other consulting companies
• Federal, State and Local public sector policy
  agencies

6

• General Degree Structure

6-unit Second major plus 2 electives OR 8
electives OR 2 minors OR 1 minor plus 4 electives
Years 2 - 3
Major Core
Faculty Core
Year 1
7
DEGREE STRUCTURE24 units as set out below

• All BS05 students complete the 8 Faculty Core
  units (coded BSB)
• The Major Core consists of 8 units (coded EFB) in
  either Economics or Finance
• 8 further units. A 6-unit Second Major plus 2
  electives, OR 8 electives, OR 2 minors, OR 1
  minor plus 4 electives.

8
MORE INFORMATION?

• Faculty of Business Student Enquiries (see
  handout)
• - Located on Level 1, B Block
• Telephone [phone]
• Facsimile 3138 1055
• Web www.bus.qut.edu.au
• E-mail bus_at_qut.edu.au

9
Economics at QUT

• Dr Tommy Tang
• Economics Subject Area Coordinator
• Phone [phone]
• Room Z842b
• Email tt.tang_at_qut.edu.au

10
Finance at QUT

• Mr John Polichronis
• Finance Subject Area Coordinator (Acting)
• Phone [phone]
• Room Z838b
• Email j.polichronis_at_qut.edu.au

11

• Students Perspectives
• Michael Golinelli
• Finance honours student

12

• Students Perspectives
• Kate Hallinan
• Economics Honours student

13
School activities and events

• School Seminar Series (students welcome to
  attend) (Each Thursday 11am-12.30pm)
• Student/staff events (tenpin bowling, croquet,
  putt putt golf, barefoot bowls)
• Town Gown Evening (great opportunity to meet
  and listen to private sector employees from
  banks, financial institutions, government)
  (Tentatively Thursday 19 March)

14
Honours Program

• Scholarships are available on application
• Must have a GPA of at least 5.5 in your
  undergraduate BS05 program to be eligible

15
Pit-Stop Tutorials

• Held throughout the semester
• Available to all students undertaking EFB units
• Cover any generic mathematical issues
• Enquiries to Tim Christensen on
  busmaths_at_qut.edu.au

16
Maths Refresher Classes

• Running on Saturday 7 March Saturday 14 March,
  8.30am to 1.30pm, in Room Z309
• Designed to refresh your knowledge of mathematics
  that will be used in your course
• Please register with Tim Christensen on
  busmaths_at_qut.edu.au

17
School of Economics and Finance

• for a dynamic and rewarding professional career
• Any Questions?

18

• Meagan Andrews
• Economics Finance Society

19
Inform Incorporate Inspire

• www.qutefs.org

20
Share Market Basics

• Companies issue shares to raise capital and these
  shares entitle the holder to part-ownership.
• Shares can earn money through dividends or
  capital gains.
• A share is a portion of the value of a company.

21
Share Market Basics

• Shares are bought and sold in a share or stock
  market.
• The share market is like any other market, there
  are buyers and sellers.
• Through supply and demand, the value of the share
  is determined by how popular the share is for
  that price.
• If it is too high (low) people will sell (buy) it.

22
Share Market Basics

• Australian Stock Exchange (ASX) is in the top 10
  biggest listed share markets in the world.
• Over 2200 companies listed worth more than 1.29
  trillion dollars collectively.
• About 10 billion dollars is traded each day on
  the ASX alone.
• The American stock market is worth about 50
  trillion Australian dollars.

23
Share Market Basics

• Three main things help share traders decide
• how much they think a stock is worth
• How the market as a whole is going
• How the firms industry is going
• How the firm itself is going

24
Determining Share Prices

• If the economy is going well, most share prices
  will go up.
• If the firms industry is going well, even if the
  market is going down, the share price may go up.
• If the economy and industry are going poorly, but
  the firm is performing well, its share price may
  still go up.
• As an investor, you must weigh up all three sets
  of information to decide on a price.

25
Mini-Share Market

• Have a look at the fact sheets provided and
• decide which shares you think will do well, stay
• the same, or do poorly.
• Each of you will now have the opportunity to make
  up your own portfolio (collection of shares).
• You have 100 buy carefully!

26
Mini-Share Market

• Just like the real market is subject to external
  economic forces our mini share market also will
  be.
• Every so often a new piece of information will be
  released.
• You have to decide what this means for each of
  the firms and whether you want to buy or sell
  them.

27
Mini-Share Market

• One minute later, what the rest of the market
  thinks will be announced, by letting you know the
  new share price.
• After the end of our pretend trading day, sell
  your shares back to the broker.
• If you have more than 100 then youve beaten the
  market and made a capital gain!

28
Time to buy your shares...
29
News Events!
Government announces it will only invest 3
billion in new broadband infrastructure in an
attempt to reduce inflation. The remainder will
have to be funded by private enterprise Survey
results say consumers are still willing to
purchase luxury goods such as Plasma TVs despite
higher interest rates
30
Old Prices
31
New Prices!
32
News Events!
Overnight, the RBA lifted the cash rate, the rate
banks borrow off each other, by 25 basis points,
or 0.25. BHP Billiton announced higher than
expected sales growth of 17 - 2 higher than
anticipated.
33
Old Prices
34
New Prices!
35
News Events!

• Global credit crunch forces one of Westpacs
  biggest borrowers into bankruptcy.
• The recession in the USA is leading to slower
  growth in China and lower demand for raw
  materials.

36
Old Prices
37
New Prices!
38
News Events!

• Origin Energy announces new government funded
  initiative for cleaner power generation including
  monopoly on any new technologies found.
• Telstras proposal to supply broadband all over
  Australian as part of a government initiative
  rejected.

39
New Prices!
40
News Events!

• The federal government agrees to guarantee all
  Australian Banks in light of the current
  financial crisis.
• Unemployment figures continue to rise, fuelling
  fears of deflation (prices lowering) due to
  lowering demand.

41
Old Prices
42
New Prices!
43
How did you go?

• Jobs in Finance
• Share trader
• Portfolio Management
• Quantitative analyst
• Mergers and Acquisitions
• Financial Planner
• Financial Research