Finance Write For Us – Finance studies the circulation process of money, that is, the way of obtaining and managing funds. It refers to the search for an increase in profits without investing more than is advisable, that is, minimizing the risks of the investment. Each entity chooses its financing sources according to the one that grants the remote importance. If the investor is willing to face more significant uncertainty, his gains may be more significant. Implementing appropriate strategies to take advantage of the economic resource would generate their optimization, thus obtaining a more good financial performance.
Finance studies the process of money circulation, the method of production and the administration of funds. It refers to the search to increase profits without spending more than is wise, minimizing the investment risks. Each entity chooses its sources of financing in order the best benefit provides. If the investor is willing to face more uncertainty, his earnings will be higher. Implementing appropriate measures and strategies to take advantage of the economic resource generates optimizing them, consequently obtaining a more good financial performance.
Finance Write For Us Introduction
Since the creation of empires and monarchies, finances have had great importance in the administration and investment activities of the economic resource of society.
Despite the current need to know how to manage economic resources individually and collectively, let’s talk about a region, state or nation; Most people do not care to know at least the fundamentals that govern finances to establish a budget, know when it is convenient to carry out investment activities and analyze economic activities in general, which would improve personal and collective financial performance according to the situation presented.
Finance Write For Us Background
Thinking about the development of the financial system necessarily moves to the stage in which transactions were carried out through barter. At that time, there was only a market for tangible goods, in which people exchanged goods and traded in grains or spices. At that time, there was no money physically. Therefore there were no financial assets, and therefore, there were no financial investments. A higher value was given to interests that retained their characteristics for a long time because, in this way, wealth was preserved.
Whenever someone invests money, someone else borrows, and the reward the investor receives is an interest rate on the original principal, called the yield, which represents a cost to the borrower.
This is how the concept of money arose and, consequently, the financial markets, which, together with the need for tangible goods, constitute the medium in which people and companies carry out economic transactions.
Finance Write For Us importance of finance
that is to say, One of the most vital elements for the management and formation of new companies, which allows them to take advantage of opportunities to grow, employ local labour and support other companies and the local, state and federal government through referral of income taxes, is to finance.
On the other hand, financial trends also define the state of the economy globally so central banks can plan monetary policies.
To run a business, companies need an endless variety of assets, which can be tangible, such as machinery, factories, and offices, and intangibles, such as brands, technical knowledge and patents; that is the need for finance since through it it will be possible to obtain the necessary money for their operation and growth.
Finance Write For Us Field of action of finance
Finance is divided into three large areas:
This branch focuses on making and managing investments in financial assets and what to do with a surplus of money when you want to invest it in the financial market. By owning a share, you own a financial asset since you can collect an amount in the future. Therefore The owner of these shares is called an investor, and those who suggest where to invest these surpluses are called promoters or investment analysts.
b).- Institutions and financial markets
however, Financial institutions are companies specialising in selling, purchasing, and creating credit titles and securities that are economic assets for investors and liabilities for companies that take the resources to finance themselves.
Financial markets are the spaces where financial institutions act to buy and sell credit instruments, such as shares, obligations or commercial paper.
c).- Corporate finance or financial administration of companies.
However, The financial administration of companies studies three aspects: investment in tangible assets, financial assets and temporary surpluses in cash, obtaining the necessary funds for investment in assets and decisions related to the reinvestment of profits and distribution of dividends. Moreover, A company is an independent economic entity that owns assets acquired through shareholder contributions and creditor financing.
The role of the financial manager
(BREALEY, 1998) Referring as a financial manager to the person responsible for a significant decision regarding investment or financing in the company.
Moreover, the treasurer is typically directly responsible for obtaining financing and managing accounts and financial relationships; therefore, In medium-sized companies, a control and management chief regularly inspects the management of the money made by the treasurer. Therefore It verifies that it is being used for what it has been destined for. That is to say Larger companies usually appoint a deputy general manager of finance, who is deeply involved in the design of fiscal policy and financial planning and supervises the work of the treasurer and the head of management control.
Among the most critical functions performed by a financial manager are the following:
- Treasury management.
- Obtaining financing.
- Credit management.
- Dividend payment.
- Preparation of budgets.
- Preparation of financial statements.
- Custody of records.
- Internal audit.
Topics that every person should know about finances
Moreover, Finance is a branch of economics that studies investment activities in tangible and financial assets and their administration.
The objective of an administrator:
That is to say, The main objective of a manager is to generate wealth for the company’s shareholders, which is measured based on return per share at book value and return per share at market value.
Responsibilities of a financial administrator:
- Budget and plan for the long term.
- Invest the moment and financing decisions on capital and inventories.
- Manage accounts receivable and cash.
- Coordinate and control the actions of the company.
- Establish and manage relationships with financial markets.
- Evaluate investment projects with a focus on corporate social responsibility.
That is to say, and Personal finances are the application of finances and its principles of a person or family in their desire to carry out their activities with the best distribution of money. How You must distribute your income between education, health, clothing, insurance, food, transportation, luxuries, etc., basically It would be best to consider income, expenses, and savings and permanently establish risks and future events. Part of the finances are checks, savings accounts, credit cards, loans, taxes, etc.
Moreover, The budget is defined as an integrating and coordinating plan, which is expressed in financial terms regarding the operations and resources that are part of a company for a given period to achieve the objectives set by senior management.
The amount that the investor receives, that is, an interest rate on the original capital.
It is the risk of not covering the financial costs and is associated with the growth of the company’s fixed economic costs in exchange for an increase higher than that predicted by the model.
A particular case of risk occurs when there is no historical background of the probabilities of events or situations. Therefore an objective probability of occurrence cannot be determined.
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Finance Write For Us
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