Basic Financial Management terms

Finance and financial management encompass numerous business and governmental activities. In the most basic sense, the term finance can be used to describe the activities of a firm attempting to raise capital through the sale of stocks, bonds, or other promissory notes. Similarly, public finance is a term used to describe government capital-raising activities through the issuance of bonds or the imposition of taxes. Financial management can be defined as those business activities undertaken with the goal of maximizing shareholder wealth, utilizing the principles of the time value of money, leverage, diversification, and an investment's expected rate of return versus its risk.

Within the discipline of finance, there are three basic components. First, there are financial instruments. These instruments—stocks and bonds—are recorded evidence of obligations on which exchanges of resources are founded. Effective investment management of these financial instruments is a vital part of any organization's financing activities. Second, there are financial markets, which are the mechanisms used to trade the financial instruments. Finally, there are banking and financial institutions, which facilitate the transfer of resources among those buying and selling the financial instruments.

In today's business environment, corporate finance addresses issues relating to individual firms. Specifically, the field of corporate finance seeks to determine the optimal investments that firms should make, the best methods of paying for those investments, and the best ways of managing daily financial activities to ensure that firms have adequate cash flow. Financial management influences all segments of corporate activity, for both profit-oriented firms and non-profit firms. Through the acquisition of funds, the allocation of resources, and the tracking of financial performance, financial management provides a vital function for any organization's activities. Furthermore, finance provides stockholders and other interested parties a tool with which to assess management activities.

Thing she does well

2007-04-26 22:12:11 by isreachout

To women and talk about money in real world terms. I am smarter than your average bear, so I agree with you guys. She is slower than my preference. BUT, I think she reaches out and makes some basic financial info digestable and less intimdating. So she isn't sophisticated enough most of you guys, but I think she is a good voice for people who are traditionally foolish or intimidated by the idea of money management.
Would it be so bad if people with high rate credit cards paid them off? Of course they shouldn't have them in the first place! But someone has to tell them!

Take a deep breath and read this...

2005-10-02 22:41:50 by IgnoreTreborandSP

First off let me congratulate you on getting a job in a financial services firm doing IT. That is a challenge in and of itself, especially in this economy.
As someone who has worked in IT off and on for most of his career and is doing it again after a hiatus, I think you need to learn the following "rules" of how to work in an IT department.
1) Most of the time the people who are in IT have the personality and the social skills of brine shrimp (case in point - shaolinpanda and trebor) - they think that anyone who doesn't understand the most "basic" tasks in their mind that you should just suck it up and deal with it

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