economics or finance

[rock]

Would you rather study economics or finance in college?

[brownsfan019]

I studied finance, so I am biased there. Each is a good major in my opinion, but it depends on what you plan to do with that degree. Your question is very vague.

[cooter]

	Quote:	rock
	Would you rather study economics or finance in college?

Either, or both (dual major). Or accounting.

I presume you're referring to undergrad though. Been there, done that already, so that option is moot at this point.

At the graduate level, would an Master in Finance or an M.B.A be useful?

Just wondering aloud....

-cooter

[rock]

i was just wondering what you guys would do

[brownsfan019]

	Quote:	rock
	i was just wondering what you guys would do

Rock,
Understand that we are traders here. So in regards to trading and going in that direction, I would actually major/double major in Computer Programming and Finance/Econ. I don't see the use of doubling in Finance or Econ, but with computers being so important, esp in trading, I would major in that field in a heartbeat if I could go back in time.

There's so many options available when you can tell a computer to do XYZ w/o you having to be around. Many, many options.

[Nick1984]

I did a finance major and a economics minor.

I can say that out of the two economics is the most useful one. Finance is good only if you really want to go into the corporate finance sector working in M&A etc, or become an insurance underwriter. Not much on trading!
The most usefull subject I did in my finance major was one on Options and Futures which taught us the basics of Black Scholes etc so that we could spot fair price for options and arbitrage oppertunities.

Employers love that subject when looking at an academic transcript because by definition it is a very hard subject to do.

Economics I have found to be more practical and applicable to every day situations. Economics I beleive also hones your analytical abilities more than any other subject apart from perhaps philosophy, because to really understand economics you need to think of an issue from many different perspectives.

Cooter, In terms of MBA's etc, in this day and age they are pretty useless IMHO. These are all pretty wanky pieces of paper you only need if you want to play to corporate finance game and in that case you're almost as secure with a CPA accreditation. Corporations dont care so much about financial theory I.e: Present value calculations, they care more about accounting profits which dont represent inflation etc.

Brownsfan, i agree with you a bit as well, computer programming skills are good to have when trading but not necessary, because no matter how good I was, i'd still more likely purchase an indicator because of the opportunity cost associated with making it yourself...i.e: Time. It takes a while to make and test them which could otherwise be spent trading anyway! (See I love economics haha).

[brownsfan019]

	Quote:	Nick1984
	Brownsfan, i agree with you a bit as well, computer programming skills are good to have when trading but not necessary, because no matter how good I was, i'd still more likely purchase an indicator because of the opportunity cost associated with making it yourself...i.e: Time. It takes a while to make and test them which could otherwise be spent trading anyway! (See I love economics haha).

That was kind of my point - with programming, you can do a number of different things pertaining to the markets - make your own indicator(s), sell your indicator(s), work for a quant fund, etc. etc.

Of all the educational background I have, I wish programming was a bigger part of it. Not only for trading too. There's just so much you can do with programming.

[Soultrader]

How about psychology? I would definitely major in it.

But regarding econ or finance, both would probably be ideal.

[Nick1984]

Psychology isnt really that suited to learning at tertiary level unless you do enough of it to do an honours dissertation because for the most part you'll be doing basic undergrad things which wont really apply to trading.

Once you get to honours then you can conduct research in a field you choose and then you can specialise in investment phsychology i guess. But don't take my word on that, different universities have different subject offerings.