Corporate Financing focuses on capital raising and has as its ultimate goal greater understanding of the capital acquisition process. Corporate Financing emphasizes capital raising in the public markets—the public equity and debt markets and the quasi-public Rule144A market. Issuance in public security markets entails strict adherence to the rules and regulations that govern the marketplace. While these rules place more limitations on managers' actions than private placements, U.S. and developed world capital markets offer firms the broadest array of possible funding sources at the lowest cost. The course covers the institutional process of security issuance—both the formal rules and regulations as well as the informal norms and practices of the marketplace.

In the first part of the course, students survey a number of commonly used financing arrangements, such as initial public offerings, follow-on equity issues, and several forms of straight and convertible debt. The range of securities covered is meant to accomplish two goals: Inform students of the terminology and basic features of these instruments and help them understand the appropriate context for when a particular security should be used. Financial strategy and the study of ways that firms ensure adequate funding and on-going access to capital markets are also examined. In the latter portion of the course, financial structure and how individual securities work together within a firm’s overall capitalization are the topics. Because firms typically rely on multiple providers of capital, well-designed financial structures must achieve compatibility among the interests of the individual capital providers. The extent to which the market perceives the potential for conflict affects both the availability and costs of external capital. All aspects of financing and this course as well require an understanding of the markets—the buyers, sellers, and institutional features.

This class targets students with professional interest in corporate finance, commercial and investment banking, financial services, and management consulting in financial services. Click on the PDF icon next to this course title to download the full syllabus which has links to the course materials.