Basic Financial Literacy
- Management Sciences
- 700 level
- 2 credit units
- 185 pages
- 18 units
This course on Basic Financial Literacy introduces postgraduate diploma students to the fundamental concepts of finance. It encompasses various areas pertinent to understanding finance, including investment types, venture creation, and diversification strategies. The course aims to equip students with the skills to evaluate projects, assess investment opportunities, and manage financial resources effectively. It covers topics such as capital markets, hedging, arbitrage, speculation, and personal financial planning, providing a comprehensive overview of basic financial literacy.
About this course
- Difficulty
- Intermediate
- Study hours
- 50 hours
- Maths
- Basic
- Content
- Theoretical, case study
- Practical work
- No
- Assignments
- Tutor Marked Assignments
- Final Examination
What you'll read
The real module and unit structure of ENT728, taken from the course material NOUN publishes.
- UNIT 1: MEANING, NATURE AND TYPES OF INVESTMENTPage 8
- UNIT 2: VENTURE CREATIONPage 17
- UNIT 3: DIVERSIFICATION AS A BASIS OF INVESTMENT PORTFOLIOPage 29
- UNIT 4: INVESTING WISELY IN CAPITAL MARKET USING HEDGINGPage 39
- UNIT 5: INVESTING WISELY IN CAPITAL MARKET USING ARBITRAGEPage 49
- UNIT 6: INVESTING WISELY IN CAPITAL MARKET USING SPECULATIONPage 54
- UNIT 7: INVESTMENT IN DERIVATIVESPage 60
- UNIT 8: INVESTMENT PORTFOLIO IN PROPERTIES AND COMMODITIESPage 69
- UNIT 9: LEVERAGING ON DEBTS & VENTURE CAPITAL IN CREATING WEALTHPage 84
- UNIT 10: INTELLECTUAL PROPERTY AND ROYALTIESPage 95
- UNIT 11: FINANCIAL MARKET INSTRUMENTSPage 111
- UNIT 12: CAPITAL GAINS AND CONTINUOUS CASH FLOWSPage 121
- UNIT 13: BUILDING PERSONAL CASH FLOWS (SAVINGS)Page 128
- UNIT 14: PERSONAL FINANCIAL PLANNINGPage 137
- UNIT 15: MAINTAINING SAVINGS ACCOUNT FOR CASH RESERVESPage 147
- UNIT 16: PLANNING FOR CONTINGENCY FUNDPage 155
- UNIT 17: INSURANCE AND RISK HEDGINGPage 166
- UNIT 18: UNDERSTANDING TAX ISSUESPage 176
One paragraph, so you can see how it reads
ENT728 · UNIT 1: MEANING, NATURE AND TYPES OF INVESTMENT
Treasury securities are obligations of the government. They are issued to cover government budget deficits (excess of expenditures over revenues) and to refinance maturing government debt. The most common are bills, notes, and bonds. Treasury bills have original maturities of I year or less, while notes are for 1 to 10 years, and bonds have maturities greater than 10 years.
What you should be able to do
- Evaluate investment opportunities and projects.
- Apply basic financial literacy principles.
- Manage personal finances effectively.
- Understand capital market strategies.
- Identify and mitigate financial risks.
What it prepares you for
- Financial Advisor
- Investment Analyst
- Entrepreneur
- Business Manager
- Project Manager
- Banking
- Finance
- Entrepreneurship
- Investment Management
- Real Estate
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 2: Capital Market Strategies
Unit 7: Investment In Derivatives
Requires understanding of complex financial instruments and market dynamics.
- Module 3: Wealth Creation
Unit 12: Capital Gains And Continuous Cash Flows
Involves understanding of complex financial instruments and market dynamics.
A suggested way through it
13 weeks, about 36 hours in total. Yours will differ.
- Week 1Module 1: Introduction
Unit 1: Meaning, Nature And Types Of Investment · 2 hours
Define investment and its nature.. Discuss the characteristics of investment: earnings, risk of loss, safety, and liquidity.. Identify and explain different types of investments: ownership, lending, and marketable securities..
- Week 2Module 1: Introduction
Unit 2: Venture Creation · 2 hours
Explain venture creation and its importance.. Discuss the stages involved in the venture creation process.. List and explain the responsibilities of entrepreneurs in venture creation..
- Week 3Module 1: Introduction
Unit 3: Diversification As A Basis Of Investment Portfolio · 2 hours
Define diversification and its role in investment.. Discuss the use of diversification in capital market investment.. Mention and explain the advantages and disadvantages of diversification..
- Week 4Module 2: Capital Market Strategies
Unit 4: Investing Wisely In Capital Market Using Hedging · 2 hours
Define hedging and its purpose in capital markets.. Discuss the process of using hedging for profitable investment.. Mention and explain the advantages and disadvantages of hedging..
Unit 5: Investing Wisely In Capital Market Using Arbitrage · 2 hours
Define arbitrage and its role in investment.. Discuss the process of using arbitrage in investment for profit..
- Week 5Module 2: Capital Market Strategies
Unit 6: Investing Wisely In Capital Market Using Speculation · 2 hours
Define speculation and its use in capital markets.. Discuss the process of using speculation in investment.. Mention the advantages and disadvantages of speculation..
- Week 6Module 2: Capital Market Strategies
Unit 7: Investment In Derivatives · 2 hours
Explain derivatives and their characteristics.. List and explain the two types of derivatives.. Identify and discuss the common variants of derivative contracts..
- Week 7Module 2: Capital Market Strategies
Unit 8: Investment Portfolio In Properties And Commodities · 2 hours
Explain investment in properties and commodities.. List and discuss sources of information for investment in property.. Mention and explain sources of cash flows in property investment..
- Week 8Module 3: Wealth Creation
Unit 9: Leveraging On Debts & Venture Capital In Creating Wealth · 2 hours
Differentiate between equity capital and debt capital.. List and explain sources of debt capital.. Explain venture capital and its advantages..
Unit 10: Intellectual Property And Royalties · 2 hours
Explain intellectual property and its rights.. Discuss the justification for intellectual property.. Explain royalties and situations warranting their payment..
- Week 9Module 3: Wealth Creation
Unit 11: Financial Market Instruments · 2 hours
Explain financial markets and their instruments.. List and explain money market instruments.. Mention and discuss capital market instruments..
- Week 10Module 3: Wealth Creation
Unit 12: Capital Gains And Continuous Cash Flows · 2 hours
Differentiate between cash flow and capital gains.. Explain capital gains investing and its principles.. Discuss leveraging on debts for investment in real estate..
- Week 11Module 3: Wealth Creation
Unit 13: Building Personal Cash Flows (Savings) · 2 hours
Define saving and its importance.. Identify different methods of saving money.. Explain reasons for building personal cash flows..
- Week 12Module 4: Personal Finance
Unit 14: Personal Financial Planning · 2 hours
Define planning personal finances.. List and explain basic issues in personal financial planning.. Discuss the steps involved in the personal financial planning process..
Unit 15: Maintaining Savings Account For Cash Reserves · 2 hours
Differentiate between cash savings and cash investment.. Discuss the nature of savings accounts.. Identify the advantages and disadvantages of savings accounts..
- Week 13Module 4: Personal Finance
Unit 16: Planning For Contingency Fund · 2 hours
Define contingency fund and its types.. Mention commitments qualifying for contingency funds.. Identify and explain essential qualities of contingency funds..
Unit 17: Insurance And Risk Hedging · 2 hours
Explain insurance and its legal principles.. Identify characteristics of insurable risks.. List and explain various types of insurance policies..
Unit 18: Understanding Tax Issues · 2 hours
Explain the essence of tax payment.. Explain taxation and fiscal regulations in Nigeria.. Discuss the Tripod of the Nigerian Tax System..
Preparing for the exam
- Review key definitions and concepts from Units 1-3 on investment types and venture creation.
- Create comparative tables outlining the advantages and disadvantages of hedging, arbitrage, and speculation (Units 4-6).
- Practice applying formulas related to capital gains and cash flow analysis from Unit 12.
- Focus on understanding the different types of insurance policies and their applications (Unit 17).
- Study the Nigerian tax system and major tax issues discussed in Unit 18, including relevant regulations.
- Create a study group to discuss complex concepts and share insights.
Questions students ask about this course
What is ENT728 about?
This course on Basic Financial Literacy introduces postgraduate diploma students to the fundamental concepts of finance. It encompasses various areas pertinent to understanding finance, including investment types, venture creation, and diversification strategies. The course aims to equip students with the skills to evaluate projects, assess investment opportunities, and manage financial resources effectively. It covers topics such as capital markets, hedging, arbitrage, speculation, and personal financial planning, providing a comprehensive overview of basic financial literacy.
How many units does ENT728 have?
ENT728, Basic Financial Literacy, has 18 units across 1 module, over 185 pages of course material. You can read it one unit at a time.
How many credit units is ENT728?
ENT728 carries 2 credit units, at 700 level in Management Sciences.
Is ENT728 hard?
ENT728 is rated intermediate level, with basic mathematical content. It is mostly theoretical and case study work.
How long does ENT728 take to study?
About 50 hours of study, spread across its 18 units.
How is ENT728 assessed?
ENT728 is assessed by Assignments, Tutor Marked Assignments and Final Examination.
What can I do with ENT728?
Financial Advisor, Investment Analyst, Entrepreneur, Business Manager and Project Manager.