Tuesday, August 18, 2009

finance




Finance is concerned with decisions we make about money. We make these decisions in the financial markets and institutions, through investments with managerial finance and through financial services. There are many investment rules, saving models and spending decisions that we all must make on a daily basis. These decisions can be made by individuals, groups or computer models.

Our financial markets and institutions include banks, credit unions, insurance companies, and saving and loan companies. These institutions offer various types of financial instruments, such as student loans, personal loans, automobile loans, mortgages and business loans to name a few. These institutions also have F.D.I.C. protection for our savings accounts. These accounts may be money market accounts, certificates of deposits, checking accounts, individual saving as well as a host of other monetary accounts.

Investments major functions are, determining the values, risks, and returns of financial assets such as stocks and bonds. Prosessing the optimal mix of securities in the portfolio of investments is the key. The golden rule of any smart investment is, the higher the risk, the greater the reward must be.

Financial services are functions provided by various organizations that operate in the finance industry that manange money and the navigational flow of monetary destinations. Such powerful companies include, banks, insurance companies, brokerage firms and other simular institutions. The people that work in these firms are considered professionals in the areas of monetary investments, retirements, mortages, automobile loans and so forth.

Business financial managers must understand the basis of finance to succeed and this is regardless of rather the business is profit or nonprofit organization. A seasoned finance manager understands interest rate verse annual percentage rate, the value of one dollar today compared to the value of two dollars in the future, and as a wise smart man told me, " we have a choice, we can be borrowers or we can be lenders".


8 comments:

  1. I think we could all relate to your Web 2.0 technology. Great blog, very informative!

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  2. Good evening Finance, i call tell you're a business person at heart. Keep the good tips coming.

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  3. Good information, it helps to understand financial instutions and financing

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  4. I think we can all use some education in Finance!! Thanks, good blog!

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  5. Good job defining terminology for us.

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  6. WAY TO GO, THIS IS A GREAT BLOG ON FINANCE AND EVERYTHING IS BADES ON FINANCE! GOOD JOB

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