Courses

Introduction to finance from the perspective of businesspeople and finance professionals.  Designed to build effective decision-making skills based on sound financial knowledge, focusing on areas such as day-to-day operational issues, launching a startup, or negotiating option bonuses.  Provides a firm grounding in the modern financial analysis underlying any decision, through three core themes: determining the value of a decision, deciding how to finance a project, and managing its risk.  Students also hone their ability to negotiate skillfully and speak intelligently about finance. 

Professor(s) who recently taught this course: Adrien Verdelhan, Lawrence Schmidt. 

Introduction to corporate finance which focuses on financing a firm through turbulence, for innovation, and for growth. Primarily uses case studies to introduce financial analytical tools needed to make real-world value-enhancing business decisions across many industries: how to decide which projects to invest in, how to finance those investments, and how to manage the cash flows of the firm.

Professor(s) who recently taught this course: Christopher Palmer, Emil Verner, Maryam Farboodi, Kerry Siani

Provides a rigorous introduction to corporate finance and capital markets, with an emphasis on applications vital to corporate managers. Exposes students to the major financial decisions made by leaders within a firm and to the ways the firm interacts with investors, with a focus on valuation. Topics include project and company valuation, measuring risk and return, stock pricing, corporate financing policy, the cost of capital, and risk management. Presents a broad overview of both theory and practice. Restricted to Sloan Fellow MBAs.

Professor(s) who recently taught this course: Paul Asquith, Emil Verner.

Core theory of capital markets and corporate finance. Topics include functions and operations of capital markets, analysis of consumption-investment decisions of investors, valuation theory, financial securities, risk analysis, portfolio theory, pricing models of risky assets, theory of efficient markets, as well as investment, financing and risk management decisions of firms. Provides a theoretical foundation of finance and its applications. Restricted to students in the Master of Finance Program.

Professor(s) who recently taught this course: Leonid Kogan, Jiang Wang. 

Foundational, applied course providing instruction in the tools and techniques of corporate financial management from the perspective of the CFO. Case studies present the financial tools needed to make value-enhancing business decisions: how to decide which projects to invest in, how to finance those investments, and how to manage the cash flows of the firm. Topics include capital budgeting, investment decisions and valuation; working capital management, security issues; dividend policy; optimal capital structure; and real options analysis. Restricted to students in the Master of Finance Program. 

Professor(s) who recently taught this course: David Thesmar, Paul Asquith

Visit the MIT Sloan's Executive MBA Program for more information. 

Explores various elements of the finance industry, from private equity to public policy, FinTech to social impact, investment banking to investment management, corporate finance to venture capital. Students engage with industry professionals about the challenges they face and how their part of the industry is changing. They also network with peers to discover the challenges and rewards associated with various careers, and explore how coursework connects with industry practice. Restricted to Finance certificate students.

Professor(s) who recently taught this course: Telis Bertsekas

Provides a firm grounding in modern financial analysis: determining the value of a decision, deciding how to finance a project, and assessing its risk. Lab component introduces modern quantitative finance practices and methods used by investment managers. Through team projects, students develop and test asset-pricing models and investment strategies using real-world market data. Provides instruction in writing and speaking from a financial perspective.

Professor(s) who recently taught this course: Paul Mende
 

Provides instruction in the tools and techniques of corporate financial management, from the perspective of the CFO. Covers capital budgeting, investment decisions and valuation; working capital management, security issues; dividend policy; optimal capital structure; and real options analysis. Lab component puts theory into practice through hands-on projects - students either conduct an event study and analyze its impact on firm capital market value, or conduct a merger model between two firms of the their choosing. Emphasizes use of research databases to test hypotheses. Provides instruction in writing and speaking from a financial perspective.

Professor(s) who recently taught this course: Christopher Palmer

Concepts and techniques for analyzing financial decisions in commercial property development and investment. Topics include property income streams, urban economics, discounted cash flow, equity valuation, leverage and income tax considerations, development projects, and joint ventures.

Professor(s) who recently taught this course: Walter Torous

Investigates the economics and finance of securitization. Considers the basic mechanics of structuring deals for various asset-backed securities. Investigates the pricing of pooled assets, using Monte Carlo and other option pricing techniques, as well as various trading strategies used in these markets.

Professor(s) who recently taught this course: Walter Torous

Examines the elements of entrepreneurial finance, focusing on technology-based start-up ventures, and the early stages of company development. Addresses key questions which challenge all entrepreneurs: how much money can and should be raised; when should it be raised and from whom; what is a reasonable valuation of a company; and how funding, employment contracts and exit decisions should be structured. Aims to prepare students for these decisions, both as entrepreneurs and venture capitalists. In-depth analysis of the structure of the private equity industry. 

Professor(s) who recently taught this course: Antoinette Schoar, Matthew Rhodes-Kropf, Tong Liu

Provides students with a solid understanding of key financial markets and the empirical skills and tools used to support decision making. Employs an in-depth, empirically-driven exploration of markets, including equity, fixed income, and derivatives.  Students apply real-world financial data to test and understand financial models, focusing on key risk factors and risk management concerns in these markets, along with the quantitative tools used to analyze risk. Discusses major institutions and players involved in each market, the evolution of the markets, and issues such as liquidity. 

Professor(s) who recently taught this course: Haoxiang Zhu

Exposes students to advanced application of tools and techniques of corporate financial management. Covers complex valuations, modelling of capital structure decisions, financial restructuring, analysis and modelling of merger transactions, and real options. Additional topics include security design, choice of financial instruments, pricing of convertible bonds and convertible preferred stocks. Also covers project finance and other hybrid financing facilities.

Professor(s) who recently taught this course: Egor Matveyev

 Case-based subject that bridges theory and practice in corporate finance, exploring the connection between finance and strategy. Covers a range of transactions and financial engineering steps used by companies to pursue their strategic goals, such as carve-outs, spin-offs, and related tools to break up and refocus business assets; special purpose vehicles to raise non-traditional capital and reconfigure corporate assets and operations; diversification as a financial strategy; control setups such as dual class shares; recapitalizations and strategic use of debt leverage; steps to address financial distress and bankruptcy; and more. Students work in study teams to complete homework assignments and prepare for class discussion. Includes project and team case competition. 15.434 recommended.

Professor(s) who recently taught this course: Nathaniel Gregory

Students develop the economic intuition and technical skills necessary to understand how to hedge and price derivatives, and how to use them for investment and risk management purposes. Topics include determinants of forward and futures prices, hedging and synthetic asset creation with futures, uses of options in investment strategies, relation between puts and calls, option valuation using binomial trees and Monte Carlo simulation, advanced hedging techniques, exotic options, and applications to corporate securities and other financial instruments.

Professor(s) who recently taught this course: Deborah Lucas

Develops an overall familiarity with fixed income markets and instruments, and a sophisticated understanding of tools - for valuation, and for quantifying, hedging, and speculating on risk. Topics include duration; convexity; modern approaches to modeling the yield curve; interest rate forwards, futures, swaps and options; credit risk and credit derivatives; mortgages; securitization; and public policy and regulation.

Professor(s) who recently taught this course: Deborah Lucas

Focuses on implementing successful investment strategies - blending academic finance with the practice of investment management employed by the world's most sophisticated (quantitative) investors. Covers the dynamics of behavioral finance and their effects on markets; investment strategies in current use, and how to build and test your own quantitative strategies; portfolio construction and trading, considering transaction costs, risk management, and efficient trade execution; and current trends and regulatory changes. Includes guest lecturers. Requires an understanding of basic statistical and financial concepts.

Professor(s) who recently taught this course: Matthew Rothman

Uses case studies to explore the financial aspects of a wide range of corporate mergers and buyout transactions: classic stock and cash mergers; minority squeeze-outs; company sale process and auction design; hostile takeover law and strategy; the structuring, financing and valuation of leveraged buyouts; the structure, history and returns of private equity buyout funds; publicly traded private equity firms; and more. Includes guest lectures on the practices and tools used in private equity and M&A. Students participate in group work, both in and out of class, including a full-term project involving the mock sale of a company. 

Professor(s) who recently taught this course: Nathaniel Gregory

Provides a strategic framework for current and future finance leaders - with domestic or multinational startups, established companies, investment banks or asset management firms - for investing and operating in international capital markets.  Includes currency markets; measuring and managing exchange rate exposure; exchange rate determination and forecasting; international financial instruments and institutions; international trading strategies; and the dynamics of global financial crises.  Incorporates real-world events into interactive discussions.

Professor(s) who recently taught this course: Jonathan Parker

Introduces a set of modern analytical tools that specifically target finance applications. Topics include statistical inference, financial time series, event study analysis, and basic machine learning techniques for forecasting. Focuses on how to apply these tools for financial and macro forecasting, quantitative trading, risk management, and fintech innovations such as Kensho's "financial answer machine'' and big-data lending platforms.

Professor(s) who recently taught this course: Hui Chen

Covers fundamental mathematics essential for the study of modern finance: probability, stochastic processes, linear algebra, statistics, optimization, and basic programming in R. Restricted to students in the Master of Finance Program.  

Professor(s) who recently taught this course: Paul Mende

Covers advanced mathematical topics essential for financial engineering and quantitative finance: linear algebra, optimization, probability, stochastic processes, statistics, and basic programming in R. Covers topics at a more advanced level and at a faster pace than 15.454. Restricted to students in the Master of Finance Program.

Professor(s) who recently taught this course: Paul Mende

Exposes students to the cutting edge of financial engineering.  Includes a deep immersion into 'how things work,' where students develop and test sophisticated computational models and solve highly complex financial problems.  Covers stochastic modeling, dynamic optimization, stochastic calculus and Monte Carlo simulation through topics such as dynamic asset pricing and investment management, market equilibrium and portfolio choice with frictions and constraints, and risk management.  Assumes solid undergraduate-level background in calculus, probability, statistics, and programming and includes a substantial coding component.  Students are encouraged but not required to use R for coursework.

Professor(s) who recently taught this course: Leonid Kogan, Paul Mende
 

Introduces a set of modern analytical tools that specifically target finance applications. Topics include statistical inference, financial time series, event study analysis, and basic machine learning techniques for forecasting. Focuses on how to apply these tools for financial and macro forecasting, quantitative trading, risk management, and fintech innovations such as Kensho's "financial answer machine" and big-data lending forms. 

Professor(s) who recently taught this course: Hui Chen

Covers methods of managing data and extracting insights from real-world financial sources. Topics include machine learning, natural language processing, predictive analytics, regression methods, and time series analysis. Applications include algorithmic trading, portfolio risk management, high-frequency market microstructure, and option pricing.  Studies major sources of financial data, raw data cleaning, data visualization, and data architecture. Provides hands-on instruction in tools used in the financial industry to process massive data sets, including SQL, relational and multidimensional databases. Emphasizes computer implementations throughout.

Professor(s) who recently taught this course: Paul Mende

Focuses on investment decisions in the presence of noisy market prices. Exposes students to the role of informational arbitrage, whereby some agents invest resources to become informed about mispricing (i.e., noise) relative to fundamental values, with hopes of profiting from it. Explains the practice of active investing, the relation between information flows and market pricing dynamics, and the roles of retail investors. Topics included derive from financial economics: market efficiency, cognitive constraints, limits to arbitrage, quantitative stock selection; and accounting-based research: equity valuation, fundamental analysis, and the role of financial analysts.

Professor(s) who recently taught this course: Eric So

Applies finance science and financial engineering tools and theory to the design and management of global financial institutions, markets, and the financial system to better understand the dynamics of institutional change and financial product/service design. Focuses on foundational analytical tools students will rely upon throughout their careers - derivative pricing and risk measurement; portfolio analysis and risk accounting; and performance measurement to analyze and implement concepts and new product ideas. Examines the needs of government as user, producer and overseer of the financial system, and how tools are applied to measure and manage risks in financial and other economic crises (e.g. 1973-1975 vs. 2007-2009 vs. 2020-2022).

Professor(s) who recently taught this course: Robert C. Merton

Applies finance science and financial engineering tools and theory to asset management, lifecycle investing, and retirement finance. Focuses on foundational analytical tools students will rely upon throughout their careers - derivative pricing and risk measurement, portfolio analysis and risk accounting, and performance measurement to analyze and implement concepts and new product ideas. Students should be comfortable with portfolio-selection theory, CAPM, option pricing, futures, swaps, and other derivative securities.

Professor(s) who recently taught this course: Robert C. Merton

Covers the new types of drugs and other therapeutics in current practice and under development, the financing and business structures of early-stage biotechnology companies, and the evaluation of their risk/reward profiles. Includes a series of live case studies with industry leaders of both established and emerging biotechnology companies as guest speakers, focusing on the underlying science and engineering as well as core financing and business issues. Students must possess a basic background in cellular and molecular biology.

Professor(s) who recently taught this course: Andrew Lo, Harvey Lodish

Drawing on the latest research in psychology, evolutionary biology, neuroscience, and artificial intelligence, as well as in behavioral and mainstream financial economics, provides new perspectives and insights into the role that human behavior plays in the business environment and the dynamics of financial markets and institutions. Incorporates practical applications from several industries including finance, insurance, biotechnology, pharmaceuticals, and government policy. Students apply ideas from this perspective to formulate original hypotheses regarding new career opportunities and disruptive technologies in their industry of choice.

Professor(s) who recently taught this course: Andrew Lo

Covers the role of finance in the biotech and pharmaceutical industries; specifically, the application of novel financing methods and business structures to facilitate drug discovery, clinical development, and greater patient access to high-cost therapies. Topics include basic financial analysis for the life-sciences professional; risks and returns in the biopharma industries; the mechanics of biotech startup financing; capital budgeting for biopharma companies; and applications of financial engineering in modern healthcare investment strategies and institutions. Develops a systemic framework for addressing the biggest challenges in the biomedical ecosystem.

Professor(s) who recently taught this course: Andrew Lo

Explores consumer finance and the ways in which financial innovation and new technologies disrupt the financial services industry, leading to material change in business models and product design in financial markets. Provides a solid understanding of rational and behavioral aspects of consumer decision-making and how the players, products, funding markets, regulatory frameworks, and fundamentals all interact to shape ever-changing consumer financial markets, including consumer debt, investment, transactions, and advising markets. Covers past and current innovations and technologies ranging from peer-to-peer lending, AI, deep learning, cryptocurrencies, blockchain technology, and open API's, to the role of FinTech startups. A combination of case studies, guest speakers and group discussion provide real-world insight and interactivity, while special review sessions help hone technical skills.

Professor(s) who recently taught this course: Jonathan Parker

Provides a unique opportunity to tackle original research problems in capital market analysis and investment management that have been posed by leading experts from the financial community. Students are assigned to teams, and each team is assigned one such problem. Teams present their solutions at a seminar which is attended by representatives of the sponsoring organization and open to the entire MIT community. Not open to students from other institutions. 

Professor(s) who recently taught this course: Mark Kritzman
 

This action learning subject provides an opportunity to bring theory into practice by working on projects sponsored by leaders in corporate finance, investment banking, and private equity. Students work in multi-disciplinary teams (combining MFin, MBA, and Sloan Fellows) to analyze and problem-solve, culminating in reports which teams present in a group setting for evaluation and feedback. Develops and hones skills required to distill the complexity of a real-world finance problem and to provide an insightful solution that is sensitive to the full context. Recent project sponsors include leading investment banks, private equity firms, and consulting firms. Not open to students from other institutions.

Professor(s) who recently taught this course:  Egor Matveyev

Bridges theory and practice, providing students with an immersive research and analysis experience during IAP followed by a classroom segment in the first half of spring term. Students work with leading industry practitioners and a diverse cross-section of students on collaborative teams, focusing on topical, real-world finance research questions posed by the practitioners. Teams then deliver a nuanced analysis and report findings, gaining insight and coaching from the experts. Practitioners represent a range of financial institutions, including investment management, hedge funds, private equity, venture capital, risk and consulting. Examples of project topics include equity and fixed income research, trading, risk analysis, venture capital valuation, private equity diligence, and fundamental industry analysis. 

Professor(s) who recently taught this course: Gita Rao

Provides a foundation in the neoclassical theory of finance that underlies more advanced study. Covers arbitrage asset pricing, optimal consumption-portfolio choices, neo-classic theory of corporate finance, static equilibrium models of asset pricing, asymmetric information, and dynamic modeling. Prepares students for further study of asset pricing theories, corporate finance and econometric work in finance. Primarily for doctoral students in finance, economics, and accounting.

Professor(s) who recently taught this course: Leonid Kogan, Lawrence Schmidt, Lira Mota

Provides an introduction to the basic theoretical and empirical contributions in corporate finance. Exposes students to the key methodological tools in modern corporate finance. Covers capital structure, corporate governance, agency problems, incomplete financial contracting, the market for corporate control, product market corporate finance interactions, corporate reorganization and bankruptcy, banking, and other selected topics. Primarily for doctoral students in finance, economics, and accounting. 

Professor(s) who recently taught this course: Antoinette Schoar, David Thesmar, Maryam Farboodi

This course builds on 15.470 and focuses on solving, estimating, and empirically evaluating theoretical models of asset prices and financial markets, as well as their microeconomic foundations and macroeconomic implications. Discusses theory and econometric methods, the state of the literature, and recent developments and empirical evidence. Covers topics such as cross-sectional and time-series models, consumption-based and intermediary-based models, financial institutions, household finance, housing, behavioral finance, financial crises, and continuous-time tools and applications. Students complete a short term paper and a presentation. Primarily for doctoral students in finance, economics, and accounting.

Professor(s) who recently taught this course: Jonathan Parker, Deborah Lucas, Hui Chen

This course builds on 15.471 and considers further topics that are at the frontier of corporate finance research. Topics covered include: structural estimation of corporate finance models, financial intermediation, corporate taxation, aggregate effects of financing frictions, corporate finance with irrational managers or irrational investors and entrepreneurial finance (young firm dynamics, venture capital and private equity). Primarily for doctoral students in finance, economics, and accounting. 

Professor(s) who recently taught this course: Antoinette Schoar, David Thesmar, Christopher Palmer, Emil Verner

Covers a series of advanced topics in finance. Topics are selected at the discretion of the instructors, in line with their current research. Provides a rapid overview of the literature, an in-depth presentation of selected contributions, and a list of potential research topics. Primarily for doctoral students in accounting, economics, and finance. 

Advanced seminar intended for PhD students interested in finance. Topics and papers vary by term, following the latest research in academia and in correlation with the weekly finance faculty research seminar. Each week, students will critically review the contributions, method of analysis, and presentation of evidence of existing research; one session is devoted to preparing for the finance seminar, while the other session discusses further work on the same topic. Restricted to doctoral students.

Reviews the merits and trade-offs of public versus private capital markets, which have witnessed tremendous growth over the last decade, from a corporate governance standpoint. Specific phenomena affecting public companies, such as shareholder activism and passive investing, are also considered. Uses corporate case studies for extensive analysis and discussion.

Professor(s) who recently taught this course: Piero Novelli

Explores the markets for cryptocurrencies, such as Bitcoin. Begins with the basics and economics of crypto assets' underlying blockchain technology and then turns to the trading and markets for cryptocurrencies, initial coin offerings, other tokens and crypto derivatives. Students gain an understanding and comparison to traditional finance of the market structure, participants, regulation and dynamics of this relatively new and volatile asset class.

Professor(s) who recently taught this course: Paul Asquith and Yida Gao

Designed for entrepreneurial types interested in the FinTech space, this course presents a unique opportunity to work through the nuts and bolts of developing, investing in or acquiring a FinTech startup. Bring your idea and/or team, or find both at class and develop your plan for the final "Demo Day" in front of a group of investors. In each class a new speaker (entrepreneurs, legal experts, venture capitalists) is welcomed who addresses relevant topics, while students present progress reports and receive advice and feedback. Students with an interest in being part of a FinTech startup, regardless of background (legal, financial, computer science, operations, etc.) should apply, individually or as part of a team. JD students from Harvard Law School and technical students from MIT are encouraged to apply. Enrollment by application only. 

Professor(s) who recently taught this course: Matthew Rhodes-Kropf

Introduces students to social impact investing - an approach intentionally seeking to create financial return and positive social impact that is actively measured. Imparts a solid analytical framework for evaluating the spectrum of social impact investments. Students gain experience in structuring different types of investments, and critically compare and contrast these investments with traditional mainstream investments, with a view to understanding structural constraints. Designed for students interested in the intersection of finance and social impact. Provides career guidance and networking opportunities. 

Professor(s) who recently taught this course: Gita Rao

This course takes the viewpoint of an investment professional working in private equity or public equity with a long-term investment horizon. The goal of the course is for students to leave with an ability to identify, diligence, and value investment opportunities using the approach practiced in the industry. This is an applied course taught through case study like assignments that mirror the actual work completed to evaluate an investment from start to finish by a private equity or public equity firm. The course will look to replicate the experience that would typically be gained in a short internship.

Professor(s) who recently taught this course: Ted Keith

While machine learning literature is extremely rich and at times overly theoretical, there are still consistently two techniques that win most machine learning competitions: neural networks and gradient boosting.  In this course we will try to provide a bridge from knowledge of learning to a foundational understanding of how those resources are applied to finance. The course provides a very practical approach to applying modern machine learning methods to problems in the financial domain. 

Professor(s) who recently taught this course: Michael Shulman, Georg Kucsko

This course is designed to introduce and teach students the skills required to manage a $1 billion+ complex multi-asset portfolio. Specifically, this course is intended to provide a solid understanding of the investment theory and analytical skills utilized by a Chief Investment Officer (CIO) when employing the “endowment model” to invest both direct investments (investments in individual securities) and indirect investments (investments in funds). The analytics and techniques that will be taught in this course are currently utilized by almost all institutional/buy-side investment managers.

Description coming soon.