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Financial management versus corporate Finance - Financial

management deals with planning, organizing, directing, and controlling


the financial activities of the firm. It also supports creating the long-term
vision, deciding where to invest, and yield insights on how to use funds
for those investments, liquidity, profitability, cash runway, etc. Corporate
finance deals with the capital structure of a corporation, including its
funding and the actions that management takes to increase its value. 2.
Real versus financial assets - Real Assets are those tangible assets
having an inherent value with physical attributes. Real assets include
commodities, metal, building, land, factory, infrastructure assets.
Financial assets are liquid property that derives value from a contractual
ownership claim or right. Financial assets are stocks, bonds, mutual
funds, bank deposits, investment accounts, good old cash, etc. 3. Money
versus Capital Markets - The money market is a section of the financial
market where financial instruments with high liquidity and short-term
maturities are traded. In the Capital market, buyers and sellers are
engaged in the trade of financial securities such as bonds, stocks, etc. 4.
Market value and intrinsic value - Intrinsic value is the calculated or
anticipated value of a firm or business, stock, currency or product
determined through fundamental analysis. Market value is the term used
to describe how much an asset or a company is worth on the financial
market, according to market participants. 5. Fintech - FinTech, a
combination of the words “financial” and “technology,” is a relatively new,
and often nebulous term that applies to any emerging technology that
helps consumers or financial institutions deliver financial services in
newer, faster ways than was traditionally available. 6. Shareholder's
wealth maximization objective versus business ethics - An efficient
market is a place where the market prices of financial instruments like
stocks reflect all information that is available. It also adjusts
instantaneously to any new information that may be disclosed. If this
theory holds true, then it is impossible for traders to consistently
outperform a market, as the price movements of the assets cannot be
predicted correctly

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