Categories
Finance

Nature of Financial Management

Financial Management is a management function that is concerned with planning, organizing, directing and controlling the financial resources of a business to maintain or improve the financial performance and position of owners of the business. While the ordinary purpose of management is to provide a good or service to customers financial managements role is to ensure that […]

Categories
Finance

The Scope of Financial Management

What Is Financial Management? Financial management is a function of management that plans, organizes, directs and controls the financial resources of an organisation. This article explains the scope of financial management. Scope of Financial Management Financial management’s scope covers many decisions within an organisation that fall into one of four main decision groups. Investment decisions […]

Categories
Finance

Types of Debentures

This article will outline the different types of debentures. What is a Debenture Debentures are long term debt instruments issued or sold by private corporate entities that pay coupons (interest payments) and return the face value at maturity. They are the most common type of debt capital market instruments issued for long term capital needs. […]

Categories
Finance

Types of Speculators

This article will explain the different types of speculators. What is a Speculator A speculator is any entity or individual that attempts to make opportunistic profits from changes in the prices of financial instruments over the short term. Speculators can be banks, entities from the corporate and foreign sector as well as individuals from the […]

Categories
Finance

Features of A Primary Market

A capital market, where governments and other institutions raise long term funds, is divided into 2 markets: A primary market and a secondary market. A primary market is where new securities are issued for the first time and a secondary market is where previously issued shares are traded. The primary market can also be referred […]

Categories
Finance

Capital Market Instruments

Capital market instruments typically consist of debt instruments and stock. The capital market is where governments and companies raise long term funds, normally 1 year or longer. There is a primary market, where new listings take place and a secondary market where existing securities trade. Some of the selected capital market instruments are Bonds, Debentures, […]

Categories
Finance

Functions Of Merchant Banking

There are different kinds of financial institutions with each offering specific offerings to serve corporations and the general public. These institutions include commercial banks, investment banks and merchant banks. A merchant bank facilitates trade and its services are limited to corporates, high net worth individuals and small to medium enterprises. The services of merchant banks […]

Categories
Finance

Functions Of Foreign Exchange Market

Also known as the forex market, the foreign exchange market is where currencies of different countries are bought and sold. This article outlines the functions of the foreign exchange market. In order for the forex market to function there needs to be demand for and supply of foreign currency. The foreign exchange market is comprised […]

Categories
Finance

Functions Of Capital Market

This article outlines the functions of the capital market. A capital market is comprised of the debt and the equity market. It is the market where long term financial instruments are traded. These instruments include bonds, debentures, ordinary (equity) shares and preference shares.  The term of these instruments is one year or longer whilst some […]