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Fundamentals of Finance

Fundamentals of Finance plays a very important role in the present market driven world. Starting from the process of production to distribution, the entrepreneur as well as the company needs finance. The business enterprises as well as firms need finance to meet all of their short term, medium term and long term needs. The long-term financial need is generally to make investment on the fixed assets such as plants, machines and buildings. The short term financial needs is generally for working capital management. The medium term financial needs generally for a period of 1 year to 5 years.
Long-Term Sources Of Finance

Share capital or equity share Debentures Loan from state financial corporation Asset securitization

Preference shares Bonds Loans from commercial banks International

Retained earnings Loans from financial institutions Venture capital funding

Medium Term Sources Of Finance

Preference shares Public deposits/fixed deposits for three years Loans from commercial banks Euro-issues

Debentures Loans from financial institutions Lease financing / hire purchase financing Foreign currency bonds

Bonds Loan from state financial corporation External commercial borrowings

Short term sources of finance

Trade credit Advances received from customers

Commercial banks Various short-term provisions

Public deposits/fixed deposits for one years

Finance Table

Finance Companies Financial Instruments International Finance Finance Ministry of Countries Finance Advisor Global Financial Market Financial Services International Business Finance

Business Finance Hyudai Motors Finance Public Finance Legal Finance Loan Finance Micro Finance Real Estate Finance Financial Planning

Small Business Finance Finance Taxation International Micro Finance Car Finance Finance & Banking Household Finance Honda Finance Finance Organisation

behavioral finance
Definition
A theory stating that there are important psychological and behavioralvariables involved in investing in the stock market that provide opportunities for smart investors to profit. For example, when a certainstock or sector becomes "hot" and prices increase substantially without a change in the company's fundamentals, behavioral finance theorists would attribute this to mass psychology. They therefore might short the stock in the long term, believing that eventually the psychological bubble will burst and they will profit.

technical analysis - Investment & Finance Definition

A method of forecasting market movements in the commodities, equities, or futures markets that analyzes price movement, trading volume, open interest, and other numerical and chart-based data. Technical analysis doesnt consider fundamental factors such as supply and demand.

technical analysis
Definition
A method of evaluating securities by relying on the assumption thatmarket data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Unlikefundamental analysis, the intrinsic value of the security is not considered. Technical analysts believe that they can accurately predict the future price of a stock by looking at its historical prices and other trading variables. Technical analysis assumes that market psychology influences trading in a way that enables predicting when a stock will rise or fall. For that reason, many technical analysts are alsomarket timers, who believe that technical analysis can be applied just as easily to the market as a whole as to an individual stock.

Careers in Corporate Finance


A career in corporate finance means you would work for a company to help it find money to run the business, grow the business, make acquistions, plan for its financial future and manage any cash on hand. You might work for a large multinational company or a smaller player with high growth prospects. Responsibility can come fast and your problem-solving skills will get put to work quickly in corporate finance jobs. The job of the financial officer is to create value for a company. For example, the finance group at American Electric Power of Columbus, Ohio has four main areas of concentration: liquidity, flexibility, compliance with laws and regulatory support. AEP's Finance Department carries out four main activities to meet its objectives: 1) designing, implementing and monitoring financial policies, 2) planning and executing the financing program, 3) managing cash resources, and 4) interfacing with the financial community and investors. Jobs in corporate finance are also relatively stable. Performance in these jobs counts, but your job is not going to depend on whether you're selling enough this week or getting good deals finished this quarter. Rather the key to performing well in corporate finance is to work with a long view of what going to make your company successful.

Many would argue that corporate finance jobs are the most desirable in the entire field of finance. Some of the benefits of working in corporate finance are: 1. 2. 3. 4. You generally work in teams which help you work with people It's alot of fun to tackle business problems that really matter You'll have many opportunities to travel and meet people and The pay in corporate finance is generally quite good.

Corporate Finance deals with the management of financial resources of non-financial firms. It involves the planning, acquisition, and financing of resources for businesses. A student interested in pursuing a career in corporate finance would take the required specialization course inCorporate Finance (FIN 3500), as well as some specialization elective courses such as International Finance (FIN 4100), Financial Modeling (FIN 4550), and/or Financial Accounting I(ACCT 3210), along with the other required courses in the Finance Specialization. The study of Investments is one of the most rewarding and intriguing pursuits in the field of Finance. It is an area having significance to both individuals and businesses. The study of investments is the study of alternative opportunities and the evaluation of an investments expected return and risk. Businesses need to invest their excess cash, banks need to invest deposits and manage trusts, insurance firms need to invest premium payments, and individuals need to invest their savings. A student interested in pursuing a career in investments would take, in addition to other specialization requirements, the required specialization course Investment Analysis and Management (FIN 4350). Other specialization elective choices would depend on the students chosen focus (corporate or personal). Risk management is another field of Finance. There is a wide range of career opportunities in this field from sales to portfolio management. Entry level positions are in the areas of:

management training claims adjustment underwriting credit management sales

Careers extend into:

employee benefits managing exposure to financial risk reinsurance physical risk management