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Introduction To Finance

Here are some of the best jobs for graduates with a finance degree: - Financial analyst - Analyze financial data to help companies or investors make informed decisions. - Investment banker - Advise companies and investors on mergers, acquisitions, IPOs, etc. - Financial advisor/planner - Help individuals and families with retirement, college savings, investments, taxes, etc. - Accountant - Prepare and examine financial records and ensure compliance with regulations. - Credit analyst - Evaluate risks involved in lending and help companies manage their credit portfolios. - Stockbroker - Buy and sell securities on behalf of clients and provide investment advice. - Insurance agent/broker - Sell insurance policies

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Judil Banastao
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160 views

Introduction To Finance

Here are some of the best jobs for graduates with a finance degree: - Financial analyst - Analyze financial data to help companies or investors make informed decisions. - Investment banker - Advise companies and investors on mergers, acquisitions, IPOs, etc. - Financial advisor/planner - Help individuals and families with retirement, college savings, investments, taxes, etc. - Accountant - Prepare and examine financial records and ensure compliance with regulations. - Credit analyst - Evaluate risks involved in lending and help companies manage their credit portfolios. - Stockbroker - Buy and sell securities on behalf of clients and provide investment advice. - Insurance agent/broker - Sell insurance policies

Uploaded by

Judil Banastao
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to Finance

What is Finance?
• Derived from the LATIN word “ finer meaning to “ END” or “ to PAY”.

When a person pays his bills, the financial matter is ended.


A family needs financial to survive
Finance and Financial Decisions are part of our daily lives
Economic activities, like business transactions , personal
investment, or even simple borrowing entail finance or have
financial implications
Government needs to be financed for a country to survive
Other Definitions:
• Finance- is the efficient allocation of scare resources. Therefore, finance is
the efficient acquisition , distribution/ allocation, and utilization of scarce
money/fund resources. ( Saldana, 1997)

• Finance – as a discipline, is concerned with identifying , evaluation and


managing sources and use of cash in orders to increase the value of the
business enterprise to its present owners. (Saldana, 1997).

• ( Saldana, 1995 definition limits only into Cash)- will replace it to FUNDS

• Finance as the study of the acquisition and investment of cash for the
purpose of enhancing value and wealth .
• As a discipline, is concerned with identifying , evaluation and managing
sources and use of funds in orders to increase the value of the business
enterprise to its present owners. (Saldana, 1997).

• Finance is the art and science of handling money( Lasher, 2014).


Functions of Finance

• Allocating available funds


• Acquiring needed funds; and
• Utilizing these funds to achieve set goals
Functions of Finance
• ALLOCATION- means determining where to
use funds currently available to the firm
• ACQUISITION- means obtaining funds from
the right sources at the right time
• ULITILIZATION – means using the funds
Classification of Finance

As to Form of Negotiation


As to User
As to Form of Negotiation

•Direct Finance- involves in


DIRECT Borrowing
•Indirect Finance- involves
Financial Intermediaries
As to User

• Public Finance- revenue and expenditures patterns of the government


• Private Finance- an individual borrowing money from another individual; company
borrowing from financial institutions

 Personal finance
 Finance of non-profit organizations
 Business finance
Finance in the Business World
• Business – is any lawful economic activity that involves:
• rendering service;
• buying and selling goods;
• converting raw materials into finished products and selling the
same;
• borrowing and lending money;
• acquiring funds and investing the same;
• extracting mineral resources; constructions buildings, road,
and infrastructure;
• providing insurance for a sense of peace; and
• serving the public like public utilizes, transportation, and
communication entities.
Finance in the Business World
• In all these activities, effectively and efficiently
acquiring and utilization funds ( finance) make the
difference and that is what business finance is all
about.

• Efficiency – is all saving time, money or effort.


• Effectiveness – is a measure of quality – producing
desired results
References:
Mariano, N.D, ( 2014). Elements of finance. Quezon City: Rex Printing
Company, Inc pp . 33-37
Mariano, N.D, ( 2014). Elements of finance. Quezon City: Rex Printing
Company, Inc pp . 77-84
Introduction to Financial
Management
Finance consists of three interrelated areas:

•Managerial Finance
•Investment
•Money and Capital Markets
What is Financial Management?

• Financial Management , otherwise called


managerial finance, is concerned with the
management of funds.
• It is the efficient and effective allocation,
acquisitions , and utilization of funds.
Goals of Financial Manager

• acquisitions of funds with the least cost from the


right sources at the right time
• effective cash management
• effective working capital mgt
• effective inventory mtg
• effective investment decisions
• proper asset allocation; and
• proper risk mgt
Tools used of Financial Managers
• Financial Policy-Making- tasks f selecting financial
goals, developing financial policies, and designing the
finance organizations to carry out the finance
functions
• Financial Planning and Budgeting- preparation of
financial plan ( forecasting, budgeting)
• Financial Analysis – process of evaluating business
performance, projects, investment options, and other
finance- related activities to determine feasibility and
profitability.
Areas of Finance

I. Investments and financial markets


II. Financial management of companies
There are separate but related .
Financial System involves flow of money and
paper between the two.

Source: ( Lasher, 2014).


The Changing Focus of Finance: ( Lasher, 2014)

• Great Deal of attention is given to the goals and


activities of the investors
• Role and functions of Financial Management
FINANCIAL MANAGEMENT:
• Means the management and control of money and
money-related operations within businesses. (Lasher,
2014)
• Also called corporate finance, focus on decisions
related to how much and what types of assets to
acquire, how to raise the capital needed to buy assets,
and how to run the firm so as to maximize its value.
( Brigham, et. al, 2014)
Assignment:
• What are best jobs for graduates with a
Finance Degree ?

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