OVERVIEW OF FINANCIAL MANAGEMENT

INTRODUCTION TO FINANCE

- Finance is the study of how individuals, institution, governments and business acquire, spend, and
manage money and other finance assets.
- This is how many works in an organizations through the help of the people who are expert in money.
They spend, invest and let their money work in the success of their firm.

THREE COMMON AREAS OF FINANCE

FINANCIAL MANAGEMENT – it is what we called corporate finance it is apply to both non profit and profit
organization. Meaning to say they are the one who acquire assets, they are the one who invest for the capital,
and they run the firm by managing its assets to make money.
CAPITAL MARKETS - are where savings and investments are channeled between suppliers and those in
need. Suppliers are people or institutions with capital to lend or invest and typically include banks and
investors. Those who seek capital in this market are businesses, governments, and individuals.
INVESTMENTS - a piece of property bought or invested in to increase wealth and set aside cash from hard-
earned income or appreciation. The main goal of an investment is to generate additional revenue or to make
money on the investment over a certain amount of time.
FIANANCE VERSUS ECONOMICS AND ACCOUNTING
Economics, accounting, and finance all have to do with how we think about money. Finance focuses on how to
split the money you have, accounting contrasts the inflow and outflow of money, and economics asks what
the wider picture is in terms of money.