INTRODUCTION

TO FINANCIAL
MANAGEMENT
Financial Environment ǀ Financial Instruments ǀ Types of Cash flows activities
 Collection and analyzation of
financial information are the core
responsibilities in finance. They are
able to contribute in times of
decision making to the company or
client based on their analysis
FINANCIAL
ENVIRONMENT
Financial Institutions and Markets

Investments

Financial Management
FINANCIAL
Organizations or
Intermediaries that help the
financial system operate
INSTITUTIONS efficiently and transfer
funds from depositors and
investors to individuals,
businesses, and
governments that seek to
spend or invest the funds in
tangible assets
 Establishment for the deposit, custody, and issue of money, for making
BANK
loans and discounts, and for making easier the exchange of funds
INSURANCE

Supervised and regulated by the Insurance Commission , these

INSURANCE
COMPANIES are companies that offer insurance policies to the public, either
by selling directly to an individual or through another source

LENDING
INSTITUTIONS They make loans available to individuals and businesses
FINANCIAL
MARKETS Physical or Electronic media
that facilitates the flow of
funds among individuals,
businesses, and
governments
 MONEY Markets in which debt securities with maturities of one year or
MARKETS less are traded
INSURANCE

CAPITAL Markets in which debt instruments with maturities longer than 1

MARKETS year and equity securities are traded

PRIMARY Markets in which financial instruments and securities are

MARKETS initially offered or sold with the proceeds going to the issuer
INVESTMENTS This area focuses on the
decisions made by
businesses and individuals
as they choose securities
for their investment
portfoliios
FINANCIAL This involves financial
MANAGEMENT planning, asset
management, and
decisions to increase the
value of the stakeholders
This area is often attributed
to business finance because
it deals with decisions
concerning cash flows, both
outflows and inflows
FINANCIAL
INTRUMENTS
AND SECURITIES
FINANCIAL
INSTRUMENT Any physical or
electronic document that
has intrinsic monetary
value or transfer value
SECURITIES
Primarily issued by
corporations to generate
cash or to acquire an
asset
SECURITIES Debt securities

Equity securities
FINANCE IN Financial management

OTHER
involves planning,
organizing, leading, and
controlling financial

AREAS resources in order to

achieve organizational
objectives
FINANCIAL
MANAGEMENT
IN AN
ORGANIZATION
 The task of a financial
manager is to ensure that
financial decions are made
with due regard to prudent
use of financial resources in
the hope of inceasing
stakeholder value