NYU Stern School of Business

Undergraduate College


Fall 2010

Instructor Details

Murphy, Charles


998 0013

See below

KMC 9-67

Available Monday, Tuesday, Wednesday and  Thursday 9am - 5pm.  Please Email with a suggeted time and we will schedule a meeting.

No email, no meeting.


Course Meetings

MW, 11:00am to 12:15pm

Tisch T-201

Final Exam:Approximately Dec. 20

Schedule exceptions
    Class will not meet on: Monday , Oct. 11
    Class will meet on:


Course Description and Learning Goals

This course provides a broad overview of investment banking and of the forces that are continuing to change it worldwide. It focuses on three big questions:  (1) How are things done in this business?  (2) Why are they done that way?  (3) How are they likely to be done in the future?  Our approach will be to examine each of the principal businesses in which various financial service firms have been involved, including: raising capital; financial advisory; broker/dealer positions; trading; investing the firm’s own capital; managing the assets of others, both institutions and individuals and risk management.


Throughout, there are a number of integrated themes. Among these are: the interplay of regulation , politics, globalization, and technology; the emergence of private equity funds and hedge funds as both critical clients and potential competitors for the major investment banks; the search for new, high-margin products, and whether that process has reached its limits; and the changing relationships among the different groups within a bank.


By the end of the semester, each student should be well prepared either for an entry-level position in any financial service firm or for a comparable position at a client firm, where he or she needs to interact with financial service firms. All students should find that they are able to understand the financial press and economic commentary with a new perspective of the global financial system.


Course Pre-Requisites

C15.0009 Corporate Finance


Course Outline

Schedule of Classes


September 8 & 13 —Overview of the Financial Services Industry and the Role of Investment Banks

Readings: Course Packet (“CP”), Articles Starting Page 1, 3, 39 & 47


September 15 & 20 — Private Equity and Hedge Funds

Readings: CP, Articles Starting Page 61, 81 & 89


September 22, 27 & 29 —Raising Public Equity

Readings: CP, Article Starting Page 109 & 115


Other Aspects of Raising Publicly Traded Equity


October 4, 6 & 13 — Publicly Traded Investment Grade Debt & Private Debt

Readings: CP, Article Starting Page 119


October 18 - First Exam ( Closed book )


October 20 & 25-- Bank Loans, and High Yield Debt

     Readings: CP, Article Starting Page 123


October 27 & November 1 — Financial Engineering and Securitizations

 Readings: CP, Article Starting Page 145

November 3 & 8 — Convertible Securities and Derivatives

Readings: CP, Articles Starting Page 137, 159, 171


November 10, 15 & 17 — Mergers, Acquisitions, and Strategic Advisory

       Readings: Handouts will be distributed in class

November 22, 24 & 29 — Secondary Market Sales & Trading and Proprietary Trading

Readings: CP, Articles Starting Page 159 & 167


December 1 & 6 — Asset Management and Private Banking

Readings: CP, Article Starting Page 189


December 8 & 13 — Managing Risks: Market Risk and People Risk


            The variety of risks faced by an IB

Readings: CP, Article Starting Page 207


December 20 – Final Exam




Required Course Materials

Required Readings


A course packet (in lieu of a text) is available at the NYU  Bookstore. Other required readings – e.g., current articles- will be distributed in class. Students are expected to keep up with the financial news throughout the course. The Financial Times, The Economist and Bloomberg.com are recommended.


Assessment Components

The final grade will be allocated according to the following formula:


Class Participation   10%  

Midterm Exam          30%

Paper / Project        20%            

Final Exam               40%



At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges  as a guide, the actual distribution for this course and your own grade will depend upon how well  you actually perform in this course.



The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.


Professional Responsibilities For This Course




In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:




Classroom Norms


Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 


Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 


Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.


Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.


Recording of Classes

Your class may be recorded for educational purposes


Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.


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