Finance
Finance is the application of the principles of financial economics to an inter-related set of monetary problems. In the case of a company, this generally involves balancing risk and profitability and is typically called managerial finance or corporate finance. Investment theory is concerned with the identification of an optimal portfolio of assets, given a set of objectives and constraints, as well as with the valuation of assets. Finance can also be used by individuals (called personal finance), and by governments (called public finance).
Finance involves:
- Investment management and valuation
- Financial markets, financial instruments, and financial institutions
- The risk-return framework and the identification of the asset appropriate discount rate
- Valuation of assets - discounting of relevant cash flows; relative valuation; contingent claims valuation
- The optimum allocation of funds - What to invest in - How much to invest - When to invest
- Corporate finance
- Obtaining funds - debt or equity sources - long term or short term - optimum capital structure
- dividend policy
- allocation of funds to long term capital investments, vs optimize short term cash flow.
- Managerial finance
- Capital budgeting and managing of existing assets
- Cash flow budgeting and working capital management
- Comparing alternative proposals
- Forecasting and risk analysis
- Wealth management and personal finance
Finding Finance Articles
- Finance an overview
- Fundamental Financial Concepts
- Annuity
- Arbitrage
- Balance sheet
- Business plan
- Business valuation
- Capital (economics)
- Capital asset pricing model
- Cash flow
- Cash flow matching
- Debt
- Discounted cash flow
- Financial capital
- Entrepreneur
- Gap financing
- Hedging
- interest rate
- Investment
- Leverage
- Locked-in value
- Liquidity
- Mark to future
- Mark to market
- Market Impact
- Medium of exchange
- Money
- Portfolio
- Reference rate
- Risk, Value at Risk
- Scenario analysis
- Short selling
- Speculation
- Standard of deferred payment
- Store of value
- Time horizon
- Time value of money
- Unit of account
- Financial Markets
- Commodities
- Securities
- Capital markets
- Stock
- Stock market
- Equity investment
- Private Equity
- Financial reports
- Fundamental analysis
- Dividend
- Stock split
- PE Ratio
- Income per share
- mergers and acquisitions
- Dow Jones Industrial Average
- Nasdaq
- Stock market crash
- Stock market bubble
- Technical analysis
- List of stock exchanges
- List of stock market indices
- Bond market
- Derivative securities
- Underlying instrument
- Derivatives market
- Equity derivative
- Forward contract
- Futures contract
- Options
- Stock option
- Warrants
- Foreign exchange option
- Interest rate options
- Bond options
- Options on futures (see Futures)
- Swaps
- Swaption
- Interest rate linked derivatives:
- Credit derivatives
- Money market
- Primary market
- Aftermarket
- Free market
- Efficient market hypothesis
- Bull market
- Bear market
- Ponzi scheme
- Economics and Finance
- Mathematics and Finance
- Constraint Finance
- The History of Finance
- Tulipomania 1620s
- South Sea Bubble 1710s
- Railway mania 1840s
- Wall Street Crash 1929
- Great Depression 1930s
- Black Monday 1987
- Asian financial crisis 1990s
- Stock market downturn of 2002 2002
Finding related topics
- list of accounting topics
- list of management topics
- list of human resource management topics
- list of marketing topics
- list of economics topics
- list of information technology management topics
- list of production topics
- list of business law topics
- list of business ethics, political economy, and philosophy of business topics
- list of business theorists
- list of economists
- list of corporate leaders
- list of companies
Links
- For a Hypertextual Finance Glossary, see Prof. Campbell R. Harvey: http://www.duke.edu/~charvey/Classes/wpg/glossary.htm
- For material covering three areas in finance - corporate finance, valuation and investment management, see Prof. Aswath Damodaran: http://pages.stern.nyu.edu/~adamodar/
- For articles on current corporate finance and investment issues, visit Oaktree Research, a financial education portal: http://www.oaktree-research.com
- For illustrative (simpler) worked examples covering several of these topics: http://www.teachmefinance.com
- For introductory articles covering mathematical finance: http://www.quantnotes.com/fundamentals/