Financial engineering - Wikipedia, the free encyclopedia

http://en.wikipedia.org/wiki/Financial_Engineering

Financial engineering
From Wikipedia, the free encyclopedia. (Redirected from Financial Engineering) Financial engineering is the process of employing mathematical finance and computer modeling skills to make pricing, hedging, trading and portfolio management decisions. Utilizing various derivative securities and other methods, financial engineering aims to precisely control the financial risk that an entity takes on. Methods can be employed to take on unlimited risks under certain events, or completely eliminate other risks by utilizing combinations of derivative and other securities. Areas where financial engineering techniques are employed include: Investment banking Corporate strategic planning Risk management Primary and derivative securities valuation Swaps & derivatives trading or dealing Financial information systems management Portfolio management Securities trading Some big contributors to financial engineering: Myron Scholes Robert Merton Fischer Black This is a field of knowledge that is drawing the attention of actuarial science graduates or computer science graduates with a good mathematical background.

See also
Financial mathematics International Swaps & Derivatives Association List of finance topics

External links
Financial Mathematics, Financial Engineering and Risk Management (http://finmath.com/) Retrieved from "http://en.wikipedia.org/wiki/Financial_engineering" Categories: Finance

This page was last modified 13:37, 8 July 2005. All text is available under the terms of the GNU Free Documentation License (see Copyrights for details).

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9/10/2005 8:47 PM

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