Finance is all about increasing value of your money and assets with time. This becomes the major points when making a move in any financial decisions. Finance can be divided in three major areas as below:
- Corporate finance
- Personal Finance
- Public Finance
1. Corporate Finance:
Corporate Finance deals with corporation's and business activities. It decides corporation's risk, return and profitability. The main concern in corporate finance is to increase stock value for stock. Corporate Finance involves many decisions to which project to undergo for maximum profits. It involves how to invest your capital and budget firm's capital.
Organizations need funds for the projects, these funding areas covers under corporate financing decision. This capital investment comes from shareholders via stocks, equity (IPO), bonds, etc. Also banks can give short term loans for projects.
Now management decides how profitable these projects are and how projects gives appropriate profits to the organizations. Also management decides how much profit should be taken for next projects.
Personal Finance:
Personal Finance:
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