Funding studies and discusses

Funding studies and discusses how individuals, businesses and organizations to raise, allocate money and the use of resources over time, taking into account the risks associated with their projects. The term "financing" can incorporate any of the following:

* The study of money and other assets;
* The management and control of these assets;
* Profiling and management of project risks;
* The science of money management;
* As a verb, "to finance" is to provide funds for business or for an individual major purchases (car, house, etc.).

The fundraising activity is the application of a set of techniques that individuals and organizations (entities) use to manage their money, particularly the differences between revenues and expenses and risks of their investments.

An entity whose income exceeds its expenses can lend or invest the surplus income. On the other hand, an entity whose income is less than its expenditure can raise capital by selling bonds or equity claims, reducing its spending or increase its revenue. The lender can find a borrower, a financial intermediary, such as a bank or to buy tickets or bonds on the bond market. The lender receives interest, the borrower pays a higher interest rates than the lender receives, and the financial intermediary pockets the difference.

A bank aggregates the work of many borrowers and lenders. A bank that accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, in order to coordinate their activities. Banks are therefore compensators of money flows in space.

A specific example of corporate finance is the sale of shares by a company to institutional investors such as investment banks, which in turn sell to the general public. The stock gives one who has partly owned by the company. If you buy a share of XYZ Inc, and they have 100 shares (held by investors), you are 1 / 100 the owner of this company. Of course, in return for shares, the company receives cash, which it uses to develop its business in a process called "equity financing." Mixed with funding from the sale of bonds (or any other debt financing) is called the capital structure of the company.

Finance is used by individuals (personal finance), government (public finance), by businesses (corporate finance), as well as a wide range of organizations, including schools and nonprofit organizations. Generally, the objectives of each of these activities are carried out through the use of appropriate financial instruments, taking into account their institutional framework.

Finance is one of the most important aspects of business management. Without financial planning for a new business is unlikely to be successful. Managing money (liquid assets), is essential to ensure a secure future, both for the individual and the organization.