What is is finance a stem major?

While finance isn't traditionally considered a "pure" STEM (Science, Technology, Engineering, and Mathematics) major, it heavily relies on and incorporates STEM principles. Whether or not it's classified as STEM depends on the specific program and institution. Many finance programs now have a strong quantitative focus, making them STEM-adjacent or even officially designated as STEM.

Key areas within finance that draw heavily from STEM fields include:

• Quantitative Analysis: This involves using mathematical and statistical models to analyze financial markets and make investment decisions.
• Financial Modeling: Building complex models, often using software and programming, to forecast financial performance and assess risk.
• Econometrics: Applying statistical methods to economic data to test theories and forecast economic trends, which are crucial for financial forecasting.
• Algorithmic Trading: Developing and implementing trading strategies using computer algorithms, requiring strong programming and mathematical skills.
• Risk Management: Identifying, assessing, and mitigating financial risks, often using sophisticated statistical and mathematical models.