Finance!

Finance is a field related to investment research. This involves dynamics of assets and liabilities over time, under more or less uncertain and dangerous circumstances. Money is also called science of money management. Finance aims to evaluate assets based on the level of risk and expected returns. Finance is divided into three subcategories: public finance, corporate finance, and personal finance.

Corporate Finance!

Corporate finance discusses the source of financing and the capital structure of the company, measures to promote the improvement of the shareholder value of the company, tools and evaluation used to allocate resources. This principle differs from the management of financial analysis of financial management of all companies, not just corporations, but the basic concept of corporate finance of financial statements is applied. Problems of all kinds of companies. Corporate finance usually involves balancing risk and profitability while maximizing corporate assets, net cash flow and inventory, and three general business development areas. , In the first step "investment budget", management should choose the "project" (if any) to be implemented. In the budget budget you can also use the general valuation method or extend the actual payment option. See Financial Modeling. The second "capital source" is provided by shareholders in the form of self funds (individuals or IPOs) for investment funds, with respect to the method of financing investments. Savings Bank) Creditors often have the form of securities and the operation (cash flow) of business. Short-term funding or capital is usually provided by the bank that provides the credit card. The balance of these elements forms the capital structure of the company. The third "Dividend Policy" requires management to determine whether unpaid earnings (surplus funds) should be retained for future investment / management needs or should be shared with shareholders. In what form The long-term financial management is often called "working capital management" and is related to the management of money, stocks and debtors.

It also includes business finance to invest in business analysis, inventory management or investment management. Investment is to acquire assets in hopes of maintaining or increasing value over time and the rate of return when paying dividends will be high. Investment Management - Portfolio Selection - Using financial analysis, you need to decide what, how much, when to invest. To do this, companies need to do the following:

Identification of relevant objectives and constraints: review of individual agencies or objectives, deadlines, risk assessment and taxation systems;

Identify the appropriate approach: active vs. passive hedge strategy

• Measure portfolio performance

Finance Services!

Companies whose revenue exceeds expenditure can lend or invest excessive profits to gain future profits. Even companies whose revenue is below the cost can also sell credits and stocks to capitalize, reduce costs, and increase revenue. A lender can find a borrower, a financial intermediary such as a bank, or purchase bonds or corporate bonds (corporate bonds, government bonds or mutual obligations) in the bond market. The beneficiary receives interest, the payer pays higher interest than the borrower, and the financial intermediary deducts the difference in loan settlement.

Banks combine the activities of many borrowers and borrowers. Banks receive deposits from borrowers who pay interest. The bank lends these deposits to borrowers. Banks allow borrowers and borrowers of various sizes to organize their activities.

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Budget!

Budget is a financial plan for a specific period (usually one year). It also includes anticipated sales and volume, resource volume, costs and costs, assets, liabilities and cash flows. Companies, governments, families, and other organizations are used to publish strategic plans for activities and events in measurable terms. 

Budget is the amount allocated for a specific purpose, the sum of the estimated cost, the way it approaches it. This could result in a good budget that will provide money for future use, or a deficit that exceeds your revenue.

 Etymology!

Budget (derived from old French word Boob, Wallet) is a quantified financial plan for the next two years. 

Budget is an important microeconomic concept that uses budget lines to describe considerations between two or more products. In other words, the budget is an organization plan stated in money.

 Purpose!

The budget helps you plan the work on site. This allows executives to think how events change and what actions must be taken. In addition, administrators can also coordinate the activities of an organization by examining the relationship between their work and other services. Other budget requirements are as follows.

• Resource management

• Tell the plan to the various managers of the center manager

• Encourage instructors to achieve budget objectives

• Check driver performance

• Make the company's performance visible

• About responsibility

In summary, the purpose of the Budget tool is as follows.

1. The tool provides predictions of revenue and expenditure, which is a model of business funding when specific strategies, events, plans are realized.

2. You can use the tool to measure the actual financial activity of the company in forecast.

3. Finally, the equipment identifies the project, program, or operational cost constraint.

Corporate!

Although the company's budget is announced every year, it is usually not a final budget that requires much effort, but it is a plan for the near future. In principle, hundreds of people, if not hundreds, are deployed in various fields (operations, personnel, IT, etc.) to determine expected income and expenditure.

Event management!

If the actual budget figure is consistent with the budget, this indicates that the manager understands his activities and makes it successful in the direction of want. On the other hand, if the number deviates from the budget, the signal "Uncontrollable" will be sent, possibly reducing the price of the action. The campaign planner enters two types of costs into one campaign. Initially it is the number of staff needed to plan and execute the campaign. The second type of cost planning is that the cost of the campaign itself is high.

Budget is a basic tool for predicting with reasonable accuracy whether an event results in revenue, loss or damage. The budget can also be used as a price tool.

Budgeting has two basic methods or philosophies. The strategy tells about mathematical models and other people.

The first thing to look at the school is that if the financial model is developed properly, we can predict the future. Variables focus on inputs and outputs, managers, and so on. Investment in time and money is to complete these models that are often used in a kind of financial calculation.

The idea of ​​other schools is that they are people, not models. Regardless of how sophisticated it is, the best information comes from business people. Therefore, it is aimed to involve business leaders beyond the budget process.

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Leverage!

In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) are strategies involving the use of funds borrowed by purchasing assets, and after taxes the assets and borrowing costs are assets. Typically, funders limit the amount of risk you want to execute, limit the amount of leverage that is permitted, and require assets to be secured as collateral for the loan. For example, in the case of residential real estate, financial institutions can provide 80% of the market value of real estate. You can borrow 70% for commercial real estate and 60% for some acts for stocks. Leverage will double revenue and loss. On the other hand, there is a risk that stocks will lead to losses. It seems that the financial cost exceeds the revenue from the asset or the value of the asset is declining.

Source!

Lifting can occur in many situations such as:

• Individuals use savings when they purchase a house by financing a part of the purchase price of the mortgage.

• Individuals lend brokerage fees and provide exposure to financial investment.

• Securities such as options and futures are transfers between borrowed parties whose principal was explicitly borrowed at a very low interest rate from the T account [2]

• The business owner lends a part of necessary financing to the company and uses the investment. The more people will lend, the less necessary justice, the less profitable and the loss, the more expanding in proportion to the higher foundation. 

• Enterprises shift activities with a fixed input cost when revenue needs to fluctuate. An increase in revenue results in a significant increase in revenues.

• Leveraged funds may tax assets by procuring a portion of the portfolio with short-term cash flows from other positions.

• EBIT means profit before interest and tax.

• DOL is the level of functional consumption

• LDF is the level of finance activity

• DCL is the level of interoperability

• RO returns to court

• ROA is an asset

Risk!

If the return on the asset exceeds the loan amount, the income increases, so stocks may increase losses. Companies that lend too much money may bankrupt or collapse with business ventures, but small businesses can survive. Investors who buy shares at a margin of 50% suffer a loss of 40% when stocks decline by 20%.

This risk may be due to the loss of the amount of guaranteed assets. The broker needs to add funds when the amount of securities declines. If the real estate amount is the subject of the loan, the bank can not change the mortgage. Cash flow and income are sufficient to maintain ongoing borrowing costs, but loans may be necessary.

This can occur exactly if there is a small liquid market and the price of other people 's sale is a depressed price. This means that if the bad things go wrong, the increase will increase, the loss will increase while things are over. This can quickly worsen even if the decline in asset returns is low or temporary.  Risk can be mitigated by organizing the rules of behavior, storing unused coins for additional loans, and lifting only liquid liquids.

On the other hand, extreme level behavior of Forex trading is relatively low risk per unit because of the relative stability compared to other markets. Compared to other trading markets, foreign exchange traders need to exchange more units of units to obtain real benefits. For example, many brokers can use 100: 1 investors. In other words, people who manage $ 1,000 can manage $ 100,000

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