TAILIEUCHUNG - Lecture Introduction to finance: Markets, investments, and financial management (14th edition): Chapter 1 - Melicher, Norton
Chapter 1 - The financial environment. This chapter includes contents: Define finance and explain why it should be studied, describe the six principles of finance, identify characteristics of an effective financial system, describe financial functions performed in an effective financial system,. | Chapter 1 The Financial Environment © 2011 John Wiley and Sons Chapter Outcomes Define finance and explain why it should be studied Describe the six principles of finance Identify characteristics of an effective financial system Describe financial functions performed in an effective financial system Chapter Outcomes (Continued) Describe the four types of financial markets Describe characteristics of the mortgage markets Discuss the developments that led to the recent financial crisis Identify several major career opportunities in finance What is Finance? FINANCE: Study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets FINANCIAL ENVIRONMENT: Encompasses the financial system, institutions, markets, and individuals that make the economy operate efficiently Three Areas of Finance within the Financial System Institutions and Markets Investments Financial Management [Note: These areas do not operate in isolation but rather interact or intersect with each other. provides a graphic illustration. ] Finance Area Definitions FINANCIAL INSTITUTIONS: Help the financial system operate efficiently and transfer funds from savers to investors FINANCIAL MARKETS: Physical locations or electronic forums that facilitate the flow of funds Finance Area Definitions (Continued) INVESTMENTS: Area involves sale or marketing of securities, analysis of securities, and management of investment risk FINANCIAL MANAGEMENT: Involves financial planning, asset management, and fund raising decisions to enhance firm value Two Themes within the Finance Topic ENTREPRENEURIAL FINANCE: Study of how growth-driven, performance-focused, early-stage firms raise funds and manage operations and assets PERSONAL FINANCE: Study of how individuals prepare for financial emergencies, protect against premature death and the loss of property, and accumulate wealth Why Study Finance? 1. To make informed
đang nạp các trang xem trước