Financial management: Difference between revisions
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'''Financial management''', often called simply "'''finance'''", is the study of how businesses and people use financial resources. It relies heavily on the field of [[accounting]] for raw data, which is used to make financial decisions. These decisions include when a firm should issue [[stock]], or take on [[bond|debt]], how to allocate funds, when to purchase assets such as equipment and inventory, and how to manage [[cash flow]]. Topics covered in the study of finance include the time value of money, cost associated with issuing stocks or debt, valuation of stocks and bonds in secondary markets, and risk analysis.[[Category:Suggestion Bot Tag]] | |||
Latest revision as of 11:01, 16 August 2024
Financial management, often called simply "finance", is the study of how businesses and people use financial resources. It relies heavily on the field of accounting for raw data, which is used to make financial decisions. These decisions include when a firm should issue stock, or take on debt, how to allocate funds, when to purchase assets such as equipment and inventory, and how to manage cash flow. Topics covered in the study of finance include the time value of money, cost associated with issuing stocks or debt, valuation of stocks and bonds in secondary markets, and risk analysis.