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Principles of Finance: Unit 1, Alex, That’s Finance Potpourri for $500 67 Views


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Description:

Okay, so you want to be a company financial manager. It's basically up to you to make money for the shareholders. It would also be swell if you made good, ethical decisions and didn't cut corners by dumping all of your company's toxic waste into the local river. You don't want to learn that lesson the hard way (skinny dipping at the company picnic).

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Transcript

00:00

Principles of finance ah la shmoop Alex that's finance potpourri

00:05

for five hundred Okay so you want to be a

00:08

company financial manager Well what does that really mean Well

00:12

more or less it means that you are the backstop

00:15

the last person standing The adult supervision in the way

00:21

your company spends and accounts for money Nothing is simple

00:24

in this world in conflicts arise like weeds Three days

00:27

after a summer rain At the end of the day

00:30

you have to ask yourself continually what's my job Who

00:33

i work for How did i get here Your job

00:36

Make money for shareholders Oh and that includes stock option

00:41

holders of which you are likely one If you get

00:43

senior enough in your company think about dr skis oid

00:47

He never signed the hippopotamus oath so he didn't agree

00:52

to the whole do no harm thing You walk into

00:55

his office with a mole you think might be more

00:58

than a mall skis oid gets a twenty percent commission

01:01

from the lab that does work on mole scrapings But

01:04

with ninety nine point nine percent certainty skis oid knows

01:08

it's just a mole Instead of just sending you home

01:11

he has you by five grand worth of tests because

01:14

his twenty percent commission i'll advise him a new set

01:17

of golf clubs And he loves golf Sound kosher to

01:19

you Yeah it ain't as a financial manager You have

01:22

to put your client's First your company first other people

01:26

first ahead of your own interests even when the action

01:30

goes against your personal best interests If you do that

01:33

well a you stay out of jail be you do

01:36

your job and see eventually you gained the trust of

01:39

the company and the people around you and can look

01:41

at yourself in the mirror in the mornings without vomiting

01:45

for ethical reasons anywhere in a way this really is

01:48

greed at work that is by consistently doing the ethically

01:52

correct thing You become long term greedy You end up

01:55

with a big stock option packages az aki leader in

01:58

your company and make money legitimately and on it slee

02:01

rather than that you know a short term golf club

02:03

greed thing Eventually people like skis oid are found out

02:07

and have tio We'll move to nairobi working for one

02:10

of the princes there who notifies people over email that

02:13

they've won a million dollars and just need fifty grand

02:17

to unlock it Short term greed usually leads to very

02:20

bad things but there are ethical forks in the road

02:23

all the time You work for a power plant and

02:26

well you could dump your nuclear waste in the river

02:29

forgetting about the effects and save a ton of money

02:32

The plan works great until you're in the delivery room

02:35

one day and it's your child who has five arms

02:38

and six eyeballs Good fiduciary duty there tio save your

02:42

company money by dumping no ethics Come first do what's

02:46

right by the law and to your customers and know

02:48

that in the end well they are your bosses even 00:02:52.215 --> [endTime] ahead of your shareholders eh

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