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

They therefore might short the stock in the long term. technical analysis . 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. For example.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.Investment & Finance Definition . believing that eventually the psychological bubble will burst and they will profit.

plan for its financial future and manage any cash on hand. technical analysis Definition A method of evaluating securities by relying on the assumption thatmarket data. the intrinsic value of the security is not considered. For that reason. open interest. . AEP's Finance Department carries out four main activities to meet its objectives: 1) designing. Technical analysis assumes that market psychology influences trading in a way that enables predicting when a stock will rise or fall. volume. can help predict future (usually short-term) market trends. trading volume. or futures markets that analyzes price movement. Technical analysis doesn’t consider fundamental factors such as supply and demand. 2) planning and executing the financing program. Unlikefundamental analysis. many technical analysts are alsomarket timers. Ohio has four main areas of concentration: liquidity. 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. flexibility. and open interest. such as charts of price. equities. the finance group at American Electric Power of Columbus. For example. Performance in these jobs counts. implementing and monitoring financial policies. 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. Rather the key to performing well in corporate finance is to work with a long view of what going to make your company successful. 3) managing cash resources. The job of the financial officer is to create value for a company. but your job is not going to depend on whether you're selling enough this week or getting good deals finished this quarter. Technical analysts believe that they can accurately predict the future price of a stock by looking at its historical prices and other trading variables.A method of forecasting market movements in the commodities. Jobs in corporate finance are also relatively stable. and other numerical and chart-based data. who believe that technical analysis can be applied just as easily to the market as a whole as to an individual stock. make acquistions. and 4) interfacing with the financial community and investors. compliance with laws and regulatory support. grow the business.

A student interested in pursuing a career in corporate finance would take the required specialization course inCorporate Finance (FIN 3500). and/or Financial Accounting I(ACCT 3210). the required specialization course Investment Analysis and Management (FIN 4350). 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. The study of Investments is one of the most rewarding and intriguing pursuits in the field of Finance. in addition to other specialization requirements. It is an area having significance to both individuals and businesses. banks need to invest deposits and manage trusts. and individuals need to invest their savings. as well as some specialization elective courses such as International Finance (FIN 4100). Corporate Finance deals with the management of financial resources of non-financial firms. Financial Modeling (FIN 4550). 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 . 4. 2. insurance firms need to invest premium payments. 3. There is a wide range of career opportunities in this field from sales to portfolio management. The study of investments is the study of alternative opportunities and the evaluation of an investment’s expected return and risk. A student interested in pursuing a career in investments would take.Many would argue that corporate finance jobs are the most desirable in the entire field of finance. and financing of resources for businesses. It involves the planning. Some of the benefits of working in corporate finance are: 1. acquisition. Risk management is another field of Finance. Businesses need to invest their excess cash. Other specialization elective choices would depend on the student’s chosen focus (corporate or personal). along with the other required courses in the Finance Specialization.

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