ROLE OF FINANCIAL MANAGER:
1.Cash raised from investor : primary role of Finance Manager is to raised money/ cash from investors willing to invest in the business model of the particular company.
2.Cash invested in firm: After raised money, finance manager invest it on the particular company for whom the money would raised.Money which is raised invested only in that company for which it has raised,not is any other company.
3.Cash ganerated by Operations: After the money has been invested in a particular company, cash been ganerated by the day to activities of the company ( through production or by giving services).No business be run long if cash is not generated for the longer period of time.
4.1 Cash reinvested: After the cash is generated the company,finance manager reinvested back in the company for the future business expansion.
4.2 Cash returned to investors: Financial manager returned some part of cash generated by the business to the investors in the form of divident.
TYPES OF FINANCIAL MARKETS:
1. Primary market: It is a market where selling of shares of company been don initially,here company sell its shares first time in market through IPO (Initial public offer). In this market generally shares are sold at discounted rates in order to attract retail investors.Here company recieve fund invested by the investors because share been issued directly by the company.
2. Secondry market: It is a market where selling and buying of shares take place through stock exchanges like BSE and NSE.Many shares of large numbers of companies are listed on NSE/BSE, where any investor can invest through a DMAT account.In this market company where investor invest money did not reciev money because investor purchase share from another investor.
3. OTC( Over the counter) market: This market is generally not very popular. Here share been transfered though written agrements.it is basically an illigal market.
TYPES OF FINANCIAL INSTITUTIONS:
1. Banks: It is main Financial institute, where deposit and lending of money takes place.Here a account holder deposit money in a bank account, bank give that money to the borrowers at higher interst rate compare to depositors.
2.Insurance companies: It a types of finance company which is in a business of insure any business or life by recieving small amount as a premium.
3.Brokrage firms: This are a types of finance company which helps in buying and selling of securities( shares , debentures ect).
4.Mutual funds: This are also a finance institure where fund been pooled from the investors and invested in a predetermined objectives.
5. Finance companies: This are a types of finance companies where deposits and lending take places. They does not recieve money directly from the public but they recieve through debentures, but they can lent same as the bank lents the money.They are also deals in all types of finance like consumer durable finance, Home loan , vehical loans,mortgage loan ect.
1.Cash raised from investor : primary role of Finance Manager is to raised money/ cash from investors willing to invest in the business model of the particular company.
2.Cash invested in firm: After raised money, finance manager invest it on the particular company for whom the money would raised.Money which is raised invested only in that company for which it has raised,not is any other company.
3.Cash ganerated by Operations: After the money has been invested in a particular company, cash been ganerated by the day to activities of the company ( through production or by giving services).No business be run long if cash is not generated for the longer period of time.
4.1 Cash reinvested: After the cash is generated the company,finance manager reinvested back in the company for the future business expansion.
4.2 Cash returned to investors: Financial manager returned some part of cash generated by the business to the investors in the form of divident.
TYPES OF FINANCIAL MARKETS:
1. Primary market: It is a market where selling of shares of company been don initially,here company sell its shares first time in market through IPO (Initial public offer). In this market generally shares are sold at discounted rates in order to attract retail investors.Here company recieve fund invested by the investors because share been issued directly by the company.
2. Secondry market: It is a market where selling and buying of shares take place through stock exchanges like BSE and NSE.Many shares of large numbers of companies are listed on NSE/BSE, where any investor can invest through a DMAT account.In this market company where investor invest money did not reciev money because investor purchase share from another investor.
3. OTC( Over the counter) market: This market is generally not very popular. Here share been transfered though written agrements.it is basically an illigal market.
TYPES OF FINANCIAL INSTITUTIONS:
1. Banks: It is main Financial institute, where deposit and lending of money takes place.Here a account holder deposit money in a bank account, bank give that money to the borrowers at higher interst rate compare to depositors.
2.Insurance companies: It a types of finance company which is in a business of insure any business or life by recieving small amount as a premium.
3.Brokrage firms: This are a types of finance company which helps in buying and selling of securities( shares , debentures ect).
4.Mutual funds: This are also a finance institure where fund been pooled from the investors and invested in a predetermined objectives.
5. Finance companies: This are a types of finance companies where deposits and lending take places. They does not recieve money directly from the public but they recieve through debentures, but they can lent same as the bank lents the money.They are also deals in all types of finance like consumer durable finance, Home loan , vehical loans,mortgage loan ect.
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