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WhatIsFinance? Financecanbetermedastheappropriatemanagementofthe moneywherevariousactivitiesareinvolvedlike, investment, lending, borrowing, saving, budgeting, speculatingandalot more. Inotherwords, itcanbesaidthatfinancingmeansto managethethefundsjudiciarylestitcanfulfillallthe requirementsofthepeopleatindividuallevelsor organizationallevelsandcanalsosaveforthefuture perspectives.
MainTypesOfFinance Followingaresomeofthemainareasoffinance: Term-loan. Peer-to-peerlending. Lineofcreditorthecreditcard. Invoicefinancing. Equityfinancing. Venturecapital. Angelinvestors.
CommonConceptsOfFinance Rateofinterest. Yields. Amountofcashflow. Financialstatements. Profit. Costofcapital. Returnrates. Shareholders. Creatingvalue. Behavioralfinance. Riskandreturn. Dividendsandreturnofcapital.
PrinciplesOfFinance Followingaresomeoftheprinciplesoffinance: Moneyhasatime-value. Thereisanexpectationofhigherreturnsincaseoftakingahigher risk. Diversemodesofinvestmentscanhelpinreducingtherisk. Financialmarketsarequiteefficientinpricingsecurities. Thereisaprobabilitythattheobjectivesofthemanagerand stockholderdifferfromeachother. Thereismuchvalueofthereputationinthemarketwhenitcomes tofinancemanagement.
WhatAreTheFinancial Theories? Followingaresomeofthefinancialtheoriesthatplaya significantroleinthefinancesectorallacrosstheglobe. Theseareasfollows: Modernportfoliotheory. Equilibriumtheory. Tobinseparationtheorem. Efficientmarkethypothesis. Arbitragepricingtheory.
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