INTRODUCTION TO FINANCE   1990: The Nobel Prize in Economics Science was awarded for the first time for

discoveries exclusively in finance course. 1997: A finance discovery won the Nobel Prize in Economics Science.

What is Finance?  According to Webster New World (1.) Money resources, income, etc (2.) The science of managing wealth  Fabozzi Defined finance as an application of economic principles and concepts to sound business decision and problem solving.  Thomas Downs Defined finance as a wonderful science that uses the pragmatism of accounting to apply the rigor of economics to the study of wealth management. Viewpoint on Finance    Finance concerns with acquiring funds on reasonable terms and conditions to pay bills promptly. Finance is concerned with cash. Finance as being concerned with procurement of funds and wise application of these funds.

Principles of Finance a. Investment Desicion- concerned with the assets to be acquired. - left-hand side of the balance sheet. b. Finance Decision- concerned with the liabilities and stockholders’ equity. - right- hand side of the balance sheet . c. Managerial Positions- related to the company’s numerous day-to-day operating and decisions such as determining the size of the company. Major Areas of Finance 1. Financial Management - sometimes called as Corporate Finance or Business Finance. - primarily concerned with making financial decisions within a business entity. 2. Investment - deals with financial transactions from the viewpoint of investors outside the company. 3. Financial Institutions and market

- Deals with banks and other firms that specialize in bringing the suppliers of funds together with the users of funds. Modern Finance Function  Steward- has control over assets of the organization with meeting all compliance standards to mitigate business risks involved in the process.  Operator- creates a strategic framework to monitor the efficiency of finance process which in turn will drive cost effectiveness factor across the organization.  Strategist- acts as strategic advisor to align the organizational goals in tandem with achieving the operational realities by means of measuring and analyzing organization performance with interpretation of finance information in the organization.  Catalyst- works as change agent to execute and monitor necessary changes to achieve the overall strategic objectives of the organization by means of aligning all the above 3 keys in tandem. Some Key Job in Finance  Loan Officer- deal with the range of borrowing/ lending needs in a modern economy. Analyzing b financial data is the heart of the lending function in commercial banks, mortgage companies, savings and loans, and credit unions. Stockbroker- provides the human interface between financial market instruments and their clients. Financial Analyst/ Financial Manager- focuses on the major

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