Chapter 1 - 1 PrinciplesofFinanceFIN3100 Chapter1 Financial...

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Principles of Finance – FIN 3100 Chapter 1  – Financial Management 1
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Agenda Define finance and financial management. Describe the role of financial intermediaries and  the money cycle. Explain the financial markets. Distinguish the four main areas of finance. Discuss the three main categories of financial  management. 2
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Finance Defined Finance  is the art and science of managing  wealth.   It is about making decisions regarding  what   assets to buy/sell and  when  to buy/sell them.  Its main objective is to make individuals and firms  better off.   3
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Financial Management Defined Financial Management  is generally defined as  those activities that create or preserve the  economic value of the assets of individuals or  firms.  Financial management comes down to making  sound financial decisions. 4
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Role of Financial Intermediaries Lender/Investors rarely  make loans directly to  borrowers. Financial Intermediaries  assist as ‘middlemen’ in  the movement of money  from lender/investors to  borrowers and back  5 The Cycle of Money
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Chapter 1 - 1 PrinciplesofFinanceFIN3100 Chapter1 Financial...

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