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