NYU Stern School of Business

Undergraduate College


Spring 2011

Instructor Details

Murphy, Charles


212 998 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 , no exceptions.


Course Meetings

TR, 3:30pm to 4:45pm

Tisch T-200

Final Exam:

Schedule exceptions
    Class will not meet on:
    Class will meet on:


Course Description and Learning Goals

This course provides a broad overview of investment banking business  and of the forces that are continuing to change it worldwide. This business has evolved into an integrated group of products and services as part of a large financial service firm or a smaller group of specific products and services  within a boutique framework. 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 , risk management and administrative functions.


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 financial service organization.


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


January 25 & 27 —Overview of the Financial Services Industry and the Role of Investment Banking

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


February 1, 3 & 8 — Private Equity and Hedge Funds

Readings: CP, Articles Starting Page 63, 77 & 85


February 10, 15 & 17 —Raising Public Equity

                      Readings: CP , Articles Starting Page 105, 125 & 131


February 22, 24 &  March 1 — Investment Grade Public and Private Debt

Readings: CP, Article Starting Page 135


March 3 & 8-- Syndicated Lending, Leveraged Lending and Leveraged Finance

     Readings: CP, Article Starting Page 139, 147, 169 & 177


March 10 - MIDTERM  EXAM


March 22 & 24 — Financial Engineering and Securitizations

 Readings: CP, Article Starting Page 181

March 29 & 31 — Convertible Securities and Structured Products



April 5, 7 & 12 — Secondary Market Sales & Trading

Readings: CP, Articles Starting Page 195, 203 & 213


April 14, 19 & 21 — Mergers, Acquisitions, and Strategic Advisory

       Readings: CP, Articles Starting Page 221 & 233

April 26 & 28 — Asset Management and Private Wealth Management



May 3 & 5 — Managing  the Firm : Market Risk and People Risk, The Administrative Functions

Readings: CP, Article Starting Page 251 & 259






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          40%

Final Exam               50%

I reserve the right to have a %, perhaps up to 20%,  of the grade associated with a Paper .



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.


Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.


Printer Friendly Version