Finance art and science of managing money

Major areas and opportunities in finance

Financial services design and delivery of advice and financial products (banking, financial
planning, investment, real estate and insurance.
Managerial finance duties of financial managers in business firm.
The managerial finance function:
The size and importance of managerial finance depends on the size of the firm. Small firms
financial affairs could be dealt by the accounting department or the CEO.
Financial managers must understand the economic framework where they operate, to
anticipate or react to changes.
Marginal cost benefit analysis financial decisions should be implemented only when added
benefits exceeds costs.
Relationship with Accounting:
Finance Accounting
Present, Future Past
Cash Flow Accrual
Interpreting and Analyzing for Decision making Presentation

Goal of the firm:
Maximize profit
Maximize shareholders wealth
Satisfy stakeholders (employees, customers, suppliers, creditors, owners, etc)
Corporate Governance - the system of structures, rights, duties, and obligations by which corporations
are directed and controlled.
Investors:
Individual - purchase relatively small quantities of shares in order to earn a return on idle funds,
build a source of retirement income, or provide financial security.
Institutional - investment professionals who are paid to manage other peoples money. They
hold and trade large quantities of securities for individuals, businesses, and governments and
tend to have a much greater impact on corporate governance.