Corporate Finance
If you want to learn about how corporate finance works, here’s the basics. Corporate finance deals with a huge range of issues relating to how companies raise money for investments and shares and how they insure themselves against the factors that can cause profit loss. It also deals with how companies grow, merge and how they purchase other companies.
One of the major differences between corporate finance and personal finance is that relationships and deals are made at a business level. A corporate bank deals with very different issues than your local bank does. If you want to take out a mortgage or loan to purchase residential property, you will usually visit your local bank. However, when companies wish to raise money to acquire new businesses or expand their existing business, they will need to visit a commercial bank or an institution that specializes in corporate lending.
Similarly, if you're an individual looking for a life insurance policy to protect you and your family against accident and death, you will usually approach either your bank or an insurance company. In the business world, companies need to insure themselves against many different factors that can negatively affect their profits. Some of these factors may include legal action by employees, competitors or customers, and natural disasters such as fires. They will usually need to protect themselves against theft and arson too. When companies purchase insurance, they need to find a commercial insurance firm that specializes in specific risk management insurance for businesses.
As you can see, personal finance and finance related issues in the business world are very different. The lending and borrowing activities of most companies are far larger than those at an individual level. The following section will introduce you to some aspects of corporate finance so that you can familiarize yourself with some common aspects of the business world.
For more infomation on corporate finance choose from the list below. |
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Banking - Business Finances - Economics - Insurance - Investing
Major Purchases - Personal Finances - Stock Market - Taxes
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