What is diversification with in the contextof financial managent?
Diversification of one's portfolio (financial management) comes from having those monies placed amoung different asset classes such as stocks (equities), fixed income (bonds), real estate, cash, and alternative investments (hedge funds, collectables, etc.). These assets should also be diversified amoungst there respective classes. Stocks should be broken down to large cap, mid cap, and small cap. Fixed income should be broken down to corporate bonds, governmant bonds, and international bonds. Alternatives should be a smaller slice and all of these asset classes should be broken down based on one's risk tollerance and time horizon. Meaning that a 25 year old working professional will generally be allocated higher in equities than a 65 year old retiree. If you're looking for an easy way to accomplish all of thee above you may want to look at well diversified portfolio of ETFs or consult a good financial advisor for guidance.
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Answer FINANCIAL MANAGEMENT IS AN MAMAGEMENT WHICH IS RELATED TO DEAL ALL THE FINANCIAL ACTIVITES Financial management is concerned with the acquisation, financing and management of assets with some overall goal in mind. In other words, Financial management is about planning income, and expenditur…e and make decisions that will enable one to survive financially (MORE)
They should determine how much the firm should invest in assets and how much cash should be raised.
A financial manager is a person in charge of a business' financial side (funding, financial planning, accounting). Some of their responsibilities include managing money to make sure that businesses are fufilling their financial obligations, seeking sources for more money, and financial goal-setting.… (MORE)
Financial management is very important or significant because it is related to funds ofcompany. Financial management guides to finance manager to make optimum position of funds. We can clearify its value in following 5 points. . 1. With study of financial management, we can protect our business fr…om pre-carious mis-management of money. Suppose, you are small businessman and you took short-term loan and financed fixed assets with this loan. It means, you have to pay loan within one year but fixed assets can not be sold within one year. In the end of year, you have not enough money to pay this long term debt and this will create risk to your business's existence. You will become insolvent. This is the simple example of mismanagement of money in your small business, but we do large scale company business, importance of financial management is greater than small business. We should invest in fixed asset if there is any other source of funds. In financial management, we make optimum capital structure and we should buy all fixed assets out of share capital money because, it will reduce the risk of repayment. . 2. In financial management, we deeply study our balance sheet and all sensitive facts should be watched which can endanger our business into loss. For example, a closing balance sheet shows you, you have to pay large amount of debt in next year and you have blocked all the money by purchasing goods or inventory. Financial management teaches you that this is not good outflow of funds which is invested in inventory. Blocked inventory never generate earning and your balance sheet's stock value gives you idea that your company is not capable to sell products quickly. Financial manager can elucidate you that overstocking will increase godown expenses one side and it is also risky due to the danger of damage the stock. Moreover, it increases risk of liquidity. Inventory management is the part of financial management and merely using inventory management can be the best way to solve the problem of overstocking. . 3. Yesterday, I am searching on Google "who are getting high salary in the world" and it is quite startling for all of us that financial managers whose duty is to use the funds of company effectively, are getting salary more than $110,640 per year ( information which is given by Forbes Magazine). This fact obviously reveals the significance of financial management. . 4. An imprudent man never thinks return on investment but you are not imprudent. So, get some knowledge of financial management, you can not endanger your money. . 5. Financial management works under two theories. One theory reins bad sources of fund. This theory elucidates us that we should think cost, risk and control and these should be minimum when we get money from others. Only financial management makes good financial structure to minimize cost, risk and control of borrowed money. Second theory elucidates or clarifies us that we should think about time, risk and return before investing our money. Our ROI should be more than our cost of capital. Our risk of investment should be least. We should get our money with high return within very short-period. All above things can be possible only after study financial management. . (MORE)
A financial Manager is a person or persons or business that manages the monitary affairs of an individual or connected/related individuals or indeed an entity or business to maximise monitary success or turn around a poor financial situation.
Financial management is important in business because whenmanagement knows, they can make adjustments to ensure the businessremains operational. Financial management also helps business takeadvantage of opportunities.
hi this is neo., u need the advantages of financial management Definition of Financial Management In the words of phillppatos "Financial Management' is concerned with the management decisions that result in the acquisition and financing of long-term and short-term assets for the firm. As such, i…t deals with situations that require the selection of specific assets or combination of assets, the selection of specific liabilities or combination of liabilities, as well as with the problems of size, and growth of enterprise. The analysis of these decisions is based upon the expected inflows and outflows of funds and their effect upon stated managerial objectives". the following are the advantages of finanacial management *profit maximisation *feasibility *wealth maximisation *survival *non-interference *intensive use (or) Objectives of financial management fix the target of finance manager. Under the scope of financial management, he has to achieve different objective of financial management. We can make the list of these objectives: 1. To Reduce the Misuse of Funds It is the objective of financial management to reduce the misuse of funds. I can take my own example. I hate misusing of my hard earned money. Last month, I have bought DVD writer for starting business of CD and DVD of educational tutorials. But, after spending one month, DVD writer is being used for production or business purposes; I think this is misuse of my fund. If I deposited it in bank, I can earn interest on saving account on daily basis. Like me, company also misuses his funds in bad projects. We should learn from objective of financial management and reduce the misuse of even one rupee. 2. To Maximize the Profit in Long Run If a businessman invests his money and wants to earn high profit, it means, it is taking high risk according to risk theory of financial management. This is not objective of financial management, but to maximize the profit in long run is real aim of financial management. 3. To Maximize the Wealth of Company An investor only purchases shares, if he hopes that he will earn high profit on it, otherwise, he can deposit his money in saving account of bank. So, it is the objective of financial management to maximize the value of share. It can be possible by following way. a) To Increase Dividend per share b) To Increase Earning per share c) To Analyze the value of share in market 4. To Fulfill the Social Responsibility Company uses the natural resources and earns money and funds. Suppose Xyz Company started a plant in F place and use water, land and machines, it earned 10 million dollars from that plant. According to my view, Xyz Company takes his all natural resources from society in the form of land, water, metal and minerals . God has made these things for whole society not a particular Xyz company. If Xyz Company has used these resources, then it is the duty of xyz Company to fulfill his responsibility toward society. This is the main objective of financial management. Company's reputation can be calculated with how many employees are working in it. What facilities are given by company to his employees? If company only shows his balance sheet of dead plants, machinery and other assets but there is not provision of any social activity or donation, that company will not get any goodwill. Some companies are being operated on the basis of public deposits instead of share capital. Why? And answer is security and that company can give only the security who wants to benefit of society like a social worker. if u need any information u an contact me: email@example.com (MORE)
Financial management is that managerial activity which is concerned of the firm's financial resources.Planning,directing,monitoring,organising and controlling of the monetary resources of an organisation. It requires 3 important functions!! 1. Financing or where do u get money from 2. Inv…esting or where do you allocate your funds 3. dividend or how much to distribute and how much to retain... hp this answer will help u.... Heera! "rjvishal" Asian Business School,Noida (MORE)
diversification is a strategy adopted by rational investors by spreading and committing their fund in several investment. ie, if one investment does bad the other want will do good.
Decisions are not taken, they are made. Financial managersobviously make decisions about MONEY. Where to spend it and howmuch and why. Business owners are typically the financial managerof a company simply because they want to make money.
Financial managers must examine whether projects are a good riskfor businesses. They must also examine what investments are goodfor businesses.
Financial leverage is important to financial management because itwill give an advantage. It allows the organization or entity tohave more security.
The success or failure of a company, is highly dependent on itsability to effectively manage and increase its value ever fiscalyear. The implicit financial management goals for managers anddirectors of a company, is to run in the interest of shareholdersand shareholder wealth for long term profitabi…lity. (MORE)
The words financial management can be interpreted in a few ways.The most accepted definition is the use and organization of money.
A financial manager is an experienced individual responsible forproviding sound financial advice to clients. The financial managermay work within a banking environment, private institution, orfinancial planning firm.
I like numbers nd is very promising as there is a wide range ofopportunities for job
The Financial accounting is mainly for the people outside a givenorganization such as the shareholders. The management accountingprovides information to the people within a given organization.
Financial management is that managerial activity which is concernedwith the planning and controlling of the firm's financialresources. Planning, directing, monitoring, organizing andcontrolling of the monetary resources of an organization. There are 3 important decisions involved: 1. Financing (w…here you get money from) 2. Investing (where do you allocate funds) 3. Dividend (how much to distribute and what to retain) (MORE)
Provide support for decision making. Financial managementprovides managers with the information and knowledge they need tosupport operational decisions and to understand the financialimplications of decisions before they are made. It also enablesmanagers to monitor their decisions for any potential… financialimplications and for lessons to be learned from experience, and toadapt or react as needed. Ensure the availability of timely, relevant and reliablefinancial and non-financial information. Financial managementgives managers the information that either forms the basis forcalculating financial information, or is used for managementcontrol and accountability purposes. Manage risks. Financial management enables an organizationto identify, assess and consider the financial consequences ofevents that could compromise its ability to achieve its goals andobjectives and/or result in significant loss of resources.Financial management is an important component of risk managementand needs to be considered with the full range of business risks,such as operational and strategic risks as well as social, legal,political and environmental risks. Use resources efficiently, effectively and economically. Financial management is necessary to ensure that an organizationhas enough resources to carry out its operations, and that it usesthese resources with due regard to economy, efficiency andeffectiveness. Strengthen accountability. Financial management is essentialfor an organization to understand and demonstrate how it has usedthe financial resources entrusted to it and what it hasaccomplished with them. Provide a supportive control environment. Financialmanagement contributes to promoting an organizational climate thatfosters the achievement of financial management objectives - aclimate that includes commitment from senior management, sharedvalues and ethics, communication and organizational learning. Comply with authorities and safeguard assets. Financialmanagement is essential to ensuring that an organization carriesout its transactions in accordance with applicable legislation,regulations and executive orders; that spending limits areobserved; and that transactions are authorized. It also provides anorganization with a system of controls for assets, liabilities,revenues and expenditures. These controls help to protect againstfraud, financial negligence, violation of financial rules orprinciples and losses of assets or public money. The objective of financial management is wealth maximization ratherthan profit maximization. Wealth maximization means the total valueof the firm. There is difference between questions "what is the objective offinancial management?" and "what are the objective of financialmanagement ?" The answer for 1st question is very easy :- the main objectives offinancial management are :- Profit maximization , Maximization ofearning per share , High growth rate of revenue , Maximization ofReturn on Equity, Maximization of return on equity , maximizingcurrent share price, maximizing intrinsic value of share etc. The 2nd question arises because all the objectives can not becompleted simultaneously so we need to find a Major objective offinancial management that objective can be "Maximizing value of thefirm." (MORE)
1.estimating financial requriments. 2.selecting a source of finance. 3.selecting a pattern of investment. 4.proper cash management. 5.implementing financial control. 6.proper use of surplus.
A financial manager has three main duties. They are to manage thebudget of the company, keep a report of all financial transactionsand to manage the financial team.
I Think Meriton Miller is the father of finance bcoz he was a noble prize winner for economics. plz check it out and give me feed back.
Traditionally Finance involves arrangement of funds required by the business enterprise from and through financial institutions ('from' signifies procurement of loan capital, and 'through' implies the selling of securities by financial institutions). Hence, the traditional approach of financial mana…gement focused on 'arrangement of finance' for meeting various financial needs of an enterprise. In the modern sense, financial management encompasses wider applications, viz., assessment of funds required, effective procurement of those funds through most economical means, and efficient utilisation of those funds through profitable investments, as well as cash and liquidity management. To put it in the words of Ezra Solomon, the key questions in financial management of a business enterprise happens to be: "(i) What is the total volume of funds an enterprise should commit? (ii) What specific assets should an enterprise acquire? (iii) How should the funds required be financed?" These questions, if answered properly, lead to four broad decision areas of financial management, viz., funds requirement decision, financing decision, investment decision, and dividend decision. (MORE)
Functions of a FINANCIAL MANAGER: 1) financial planning and controlling 2) deciding financial policy 3) acquisition of funds 4) investment of funds 5) helping in evaluating decisions 6) maintaining proper liquidity 7) understanding the capital market by- firstname.lastname@example.org Good answer… (MORE)
Financial management is a discipline that allows manages and othersto be more in control of their finances. They get to learn how toinvest and make profits.
Strategic financial management is a study of finance. It will astudy a company with its long term goals in mind for morereference.
Most dealers understand the value of the collection of financial data, but also realize the challenges to harness this knowledge to create intelligent, active routes back to the client. Data mining technology - and the techniques for recognizing and tracking patterns in the data - helps businesses s…ift through layers of seemingly unrelated data meaningful relationships, where you can anticipate, rather than just react address customer needs and financial need. In this accessible introduction, which provides an overview of business and technology of data mining and describes how, along with solid business processes and complementary technologies, data mining can reinforce and redefine for financial analysis. Objective: 1. The main objective of mining techniques is to discuss how to customize the data mining tools must be developed for the analysis of financial data. 2. The pattern of use in terms of the effects can be categories as the need for financial analysis. 3. Develop a tool of financial analysis through data mining techniques. Source: http://www.moneymanagersllc.com (MORE)
You have to be top player for your 2 first yrs on the game or stay as the top player till your noticed.
â¢To find out the liquidity position of the concern through ratio analysis.. â¢To study the growth of RaneMadras Private Ltd.in terms of cash flow statement.. â¢To know the short term Solvency Position of the company..
sales forecasting reports, budget analysis and comparative analysis, feasibility studies (you know like market research to judge if an idea is doable), and merger and consolidation reports.
I have a 4 year degree in Accounting and understand the importance of Sales, Customer service and profitability, as well as working in a safe environment. I believe in "hands - on" financial management from both a micro and macro economic point of view. I believe my 18 years of accounting experience… and over 7 years of retail experience serve me well for being prepared to take on a role that includes financial manager. (MORE)
Generally, diversification helps reduce the overall credit risk exposure for financial institutions by reducing their overall expected chargeoff rates.
decision that increases the value of their shares, Thus while performing the finance function, the financial manager should strive to maximize .
How do limitations on domestic geographic diversification affect an financial institution profitability?
Any increase in profit due to economies of scale is lost onincreased risky behavior from the company. As companies expand theyinturpret risk differently, what used to be a risky endevor,"morgaged backed securities" now seems to have a smaller impact ofrisk compared to the larger size of the company.… The onlylimitations on domestic geographic diversification that affectsprofitability are the ones managment creates though changes inpolicy due to increased market share. (MORE)
The modern financial manager uses computer technology to developstrategies. The traditional financial manager uses research andevaluation to develop strategies.
Financial Management Importance Financial management importance can be explained as management of money matters. It deals with managing money in all areas of life. Financial management includes personal financial management and organizational financial management. Personal finance management wi…ll help you manage the finance of your home which includes budgeting, saving, investing, debt management and other aspects related to personal money where by an individual can achieve personal goals. Whereas organizational finance management means the management of finance of a business or organization in order to achieve financial objectives. In an organization the key objectives of financial management would be to create wealth for business, generate cash and gain maximum profits from the investments of the business considering the risks involved. Financial management is very important for both individuals and organizations because it deals with managing the funds. It guides a company and individual to make optimum use of money to achieve maximum returns. For an individual financial management will help to save more and thus invest more. Since in includes debt management, it will guide the individual to create a financial plan whereby all the debts are paid on time. It will help to spend less and earn more, this will lead to more savings and thus a secure future. Financial management will help in retirement and investment planning . Lack of financial management in business will lead to losses and closure of business. With the study of financial management we can protect the business from miss management of money. Without proper financial management debts will not be paid in time and may make the businessman insolvent. Financial management will study the balance sheet of the company and keeps a watch on all sensitive facts that can endanger business into loss. It teaches us that we should think about cost, risk and control in any business and borrowed money must be minimum. It also explains the importance of time, risk and returns on investment. The return on investment must always be more than the cost of capital, risk investment should be least. We should get our money within a short period of time, all these facts are important for success of any business. Financial management consists of several aspects of business where a finance manager makes decisions on the basis of the financial data with regards to allocating funds, financing business and to develop policies to achieve business goals. Different types of accounting tools are used to manage finance in any business. For example ratios are used to compare performance of the business periodically and also with other businesses. The profitability ratio measure the profit margin, return on assets and return on equity. The liquidity ratio measure the current ratio and quick ratio that provide information on the company's ability to pay off debts. This ratio analysis enables the organization to compare and measure its performance. Financial management evaluates the performance of the business and keeps a check on the profitability aspect of the business. The importance of financial management can be summarized as follows: . It brings economic growth and development through investments , financing, dividend and risk management decision which help companies to undertake better projects. . When there is good growth and development of the economy it will ultimately improve the standard of living of all people. . Improved standard of living will lead to good health and financial stress will reduce considerably. . It enables the individual to take better financial decision which will reduce poverty, reduce debts and increase savings and investments. . Better financial ability will lead to profitability which will create new jobs and in turn lead to more development , expansion and will promote efficiency. In personal life, financial management helps us to create a comfortable life with an assurance of a secured future and freedom to spend money to make us happy. The importance of financial planning and management is reflected in all the areas of personal and business life , it must not be avoided. All individuals no matter what their financial capacity is, must learn and study financial management and adapt it to improve their life.. (MORE)
how does market liquidity, competitiveness, and efficiency impactfinancial managers in regards to telecommunications AT&T andVerizon Wireless
Yes it's very easy, for there are many ads for financial management, just find one and choose the one that best suits you. Most people avoid ads because they think they're scams, but it may surprise you how many aren't actuually scams.
Well bro you know what? You can't really learn Financial Management. Its a technique for analysis of financial information. U wanna be good in it?? Well start analysing various balance sheets of different industries.. Or u can also take up a course for Management in finance..
Role of financial manager is to give best ideas for a company after seeing the financial statements...
There are several different managers for Elan Financial Services because there are about 2000 branches around the country. It would be hard to find all of the branch managers.
Personal financial management means manage their own finance and meet their financial needs according to the requirement.
firstly the main role of manager to fully know about the today's finance and they have a lot of knowledge about the financial things........and also know about the in which way they can handle finance.......
The goal of IT Financial Management is to ensure that optimal use is made of the organization's financial resources and that this is achieved in compliance with the regulatory framework within which the IT service provider operates.
The key activities of financial management are as follows:>Makeas much profit as possible>Make sure the shareholders have asmuch money as one can>Estimate the whole amount of financialrequirements of the company>Make sure owned finance and borrowedfinance remain balanced>Improve well being for the c…ompany andset a good example>Have financial discipline to make surefinances are not being misused>Reduce costs and risks for thecompany and get a stable insurance as well>Set a balance betweenowned finance and borrowed finance (MORE)
Advantages: it allows you to have cash when that cash is required (helping prevent bankruptcy) and helps you understand the profitability of the business Disadvantages: Financial reports are like the tail on a dog: at best they point to where the dog/company has been. They are no substitute for v…ision or leadership. (MORE)
Financial Management is more than or more comprehensive then managing a check book or making a budget. It is a long-term comprehensive planning for your money and investments. Examples are this yes you need to do the basics current income sources and current expenses but the leftover values not spe…nt or to increase these values to place or create excess money to work for the individual, group or business. This money is then managed to generate income in variable ways either interest earnings, projected returns and tax shelters for the future. All this is done weighting in the factor that stable income fluctuates and expenses fluctuate. A simplified example for a individual is as follows: A 12 year old earns the following part-time with a once a week paper delivery You earn $100 per month Living expenses $20 per month (personal needs beyond parents budget) FICA/Taxes/insurance is $40 per month That leaves you with $40 per month to invest No you save that $40 per month you have in one year + interest $481.81 in a year with a walking route. Here is financial management you realize this upon the first month of working that all you will have saved in a years time is $481.81 but you want more. So you decide to shop wiser reducing your expenses by half and buy better products that last longer. So instead of saving $40 per month and spending $20 you are saving $50 per month and spending $10 per month. $603.21 at the end of a year on a walking route. As a smart financial manger at 12 your realize there can be better: Let's say you instead of spending $10 you spend $5 per month for three months before reverting back to $10 budget and save your money to spend on making even more money by buying a used bicycle off craig's list to expand your route by 3 fold making more money. It would look like this: Save $55 per 3 months balance is $165.00 you spend $120 on bicycle leaving you with $45 in savings but you pick-up the big route earning $300 per month with wage expenses (FICA/Taxes/Insurance) at $98 per month and you spend on a budget living expense $10 per month so that leaves you with $192 for the remaining 9 months + $45 left in your account that equals to $1775.21 at the end of the year. Now you decide to increase your profits even more by buying your self a better bicycle at $300 with an attached cart selling your used bicycle for half to finance your new bicycle purchase so those new wheels cost you $217.50 and you pick-up additional income delivering grocers by bike on weekends + tips and still keep your paper route you earn at age 13 $618 per month still keep your $10.00 spending budget you wage expense is $123 so in the next year you've earned + previous savings in the bank comes to $7512.31 This savvy kid later upgrades to a moped as cheaper and efficient moped used at $800 selling his bike at $150 to finance his moped costing him $650 he's more zips through and goes after more lucrative work so by graduation he can afford to sell his moped for $400 and have the money to buy a used economy car and $50k in the bank heading to college working all the way with little debt so by the time he's ready to enter his career a year later he sells his old college car for a used upgrade - in the next saves for half down payment on a home in five years purchase a new vehicle for cash and in ten 13 years of his job house is paid and all income is savings are invested into family/vacations and retirement or life's emergencies. Done! Simple put Financial management is about making the most out of your time/money and identifying better options to reach your goals faster and smarter securing your financial future enabling you more opportunities. Doing this at a business perspective is slightly different but the ideas are pretty much the same growth and expansion for more options in a higher return. (MORE)
Objectives of Financial Management . The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-. To ensure regular and adequate supply of funds to the concern.. To ensure adequate returns to the shareholders… which will depend upon the earning capacity, market price of the share, expectations of the shareholders.. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved.. To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.. (MORE)
A financial manager is responsible for providing financial adviceand support to clients and colleagues to enable them to make soundbusiness decisions. Specific work environments vary considerablyand include both public and private sector organisations, such asmultinational corporations, retailers, f…inancial institutions, NHStrusts, charities, manufacturing companies, universities andgeneral businesses. (MORE)
Capita Financial is a company that provides financial services to industry. Currently the Capita Financial is managed by the Capita managers in the UK.