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Course List
Introduction to the Securities Industry
Introduction to the Securities Industry
Introduction to U.S. Securities Processing
Securities Lending and Borrowing : An Operations Perspective
Foundations of Investment Management and Buyside Operations
Dealing with Change in the Financial Markets
Collateral Management: An Operations Perspective
International Issues
International Securities Operations
International Portfolio Accounting
Foreign Currency: Markets, Clearance, Settlement & Accounting
Foreign Exchange: Lifecycle of a Trade
Corporate Actions
U.S. Domestic Corporate Actions
Global Corporate Actions
Capital Markets
Capital Markets Overview
Capital Market Economics - Investigating the Linkages Between the Real Economy and the Financial Markets
Portfolio Management
Portfolio Management
Securities Analysis
Managing Risk
Risk in a Global Market - Management and Operational Challenges Looking Forward
Financial Management
Financial Accounting and Financial Mathematics
Financial Statement Analysis
Fixed Income Securities
Bond Math: Mathematics of the Fixed Income Market
Structured Securities: MBS, ABS, CDOs
Introduction to Fixed Income Products
Accounting for Fixed Income Securities and Derivatives
Mortgage-Backed Securities
Collateralized Debt Obligations and Credit Default Swaps (CDOs and CDS)
Fixed Income Analytics
Interest Rate Swaps and Credit Default Swaps
Fixed Income Securities Trade Processing and Operations
Accounting, Regulatory & Management
Stock Brokerage Accounting & Securities Regulations
Introduction to Private Equity Markets
Trading After the Volcker Rule
Dodd-Frank for Non-US Derivatives Users
Complying with the MiFID II/MAR Rules
Introduction to Derivative Products
Derivatives: Markets, Operations, Accounting & Control
Derivative Products: Risk Management and Valuation
Option Valuation and Trading
Equity Derivatives: Futures and Swaps
Interest Rate Futures and Swaps
Introduction to Options: Products, Trading & Processing
Swaps Processing and Operations
Commodity Futures: Energy, Metals and Agricultural
Equity Options: Strategies, Accounting and Operations
Mutual Funds
Introduction to Mutual Funds
Mutual Fund Operations

Course Description
Financial Accounting and Financial Mathematics
Available Dates:
November 14, 2018, New York
Course Code: 530
Duration: 1 day
Level: Basic
Fee: $795.00
Instructor: Douglas Carroll
CPE Credits: 6
Prerequisite: No Prerequisite Required.

This seminar provides a broad overview of two essential competencies for financial professionals: financial accounting and financial mathematics.

The first half of the day provides a concise practical introduction to financial accounting, the language of business. The presentation takes a user-friendly approach to the explanation and illustration of core accounting concepts.

These concepts are then examined in the context of the preparation and interpretation of the three primary financial statements; balance sheets, income statements and cash flow statements.  Participants will get exposure to the formal accounting treatment of assets, liabilities, revenues and expenses. The presentation will emphasize common sense insight helpful in the daily use and interpretation of financial statements.

The balance of the seminar provides an introduction to the mathematical tools widely employed in investments and finance. This segment begins with a review of the fundamental math used to quantify risk and return.  The presentation will then explore the application of those mathematical methods in the fixed income and equities markets. The initial portion of this segment addresses the basics: time value of money, compounding and discounting; rate of return, holding period returns and conventions for calculating; measuring risk for individual securities and portfolios.

The remainder of the segment emphasizes the specific application of these ideas; yields, price, valuation and risk for fixed income securities; analysis, valuation and risk for equities.


Financial Statements

  • Types of Financial Statements
  • How the Financial Statements Relate to one Another

 General Accounting Issues

  • GAAP (Generally Accepted Accounting Principles)
  • Accounting Concepts and Conventions

 Structure and Interpretation of Financial Statements

  • Balance Sheet: Assets, Liabilities and Equities
  • Income Statement: Revenues, Expenses, Gains and Losses
  • Cash Flow Statement: Cash Provided by/used for Operations, Investments and Financing activities 

Tools And Techniques For Analyzing Financial Information

  • Financial Ratios
  • Use and Misuse of Financial Ratios in Analyzing Financial Statements



  • Time Value of Money
    • Cash Flows and Discount Rates
    • Present Values
    • Future Values
  • Investment Measures
    • Returns: Calculation and Conventions
    • Risks: Standard Deviation, Covariance and Correlation

Fixed Income Analytics

  • Price and Yield Calculations
  • Yield Curves, Spot Rate Curves and Fixed Income Valuation
  • Quantifying Interest Rate Risk
    • Non-callable Bonds: Modified Duration and Convexity
    • Callable Bonds: Effective Duration and Convexity

Equity Securities Analytics

  • Equity Securities Valuation
  • Discounted Cash Flows, Earnings or Dividends
  • Earnings, Cash Flow, Sales or Book Value Multiples

Participants wishing to replicate calculations presented should have a calculator available.

After completing this program participants should be able to:

  • Discuss the basics of the primary financial statements (balance sheets, income statements and cash flow statements): purpose, structure and basis of presentation
  • Distinguish between accounting (book) value versus economic value, as well as explain reasons for possible differences between them
  • Describe the various conventions for revenue and expense recognition and how the choice of accounting method impacts reported profitability 
  • Recognize the concept of time value of money and how it is reflected in various fixed income and equity pricing/valuation models
  • Discuss the importance and impact of the yield curve in fixed income securities analysis
  • Describe the commonly used methodologies used in the valuation of equity securities