Overview of Financial Management

FINANCE

• is a term for matters regarding the management, creation, and study of money and investments.
• is defined as the management of money and includes activities such as investing, borrowing, lending,
budgeting, saving, and forecasting.
• science and art of managing money in order to achieve appropriate objective.
• Is referred as the provision of funds and their effective utilizations in business concern
• Lifeblood of business organization to meet requirements of their business activities and economic world
THREE AREAS OF FINANCE

FINANCIAL MANAGEMENT

CAPITAL MARKETS

INVESTMENTS
FINANCE MANAGEMENT

• also called corporate finance, focuses on decisions relating to how much and what types of assets to acquire,
how to raise the capital needed to buy assets, and how to run the firm to maximize its value.

• Managerial activities concerned with planning and controlling of firm's financial resources to generate returns
on its invested funds

JOBS in FINANCE

• Investment Banker
• Financial Analyst
• Chief Financial Officer (CFO)
• Controller
• Accountant
THREE FORMS OF BUSINESS ORGANIZATION

• Proprietorship
• Partnership
• Corporation
STOCK PRICES
• refers to the price that a share of stock is trading on the market.

INTRINSIC VALUE
• is a company's actual worth in peso.
• An estimate of a stock’s “true” value based on accurate risk and
return
data. The intrinsic value can be estimated but not measured precisely.
BUSINESS ETHICS
• A company’s attitude and conduct toward its employees, customers,
community, and stockholders.
• coming to know what it right or wrong in the workplace and doing
what's right
• is the study of appropriate business policies and practices regarding
potentially controversial subjects including corporate governance,
insider trading, bribery, discrimination, corporate social
responsibility, and fiduciary responsibilities