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Managerial or
corporate finance is the task of providing
the funds for a corporation's activities.
For small business, this is referred to as
SME finance. It generally involves balancing
risk and profitability, while attempting to
maximize an entity's wealth and the value of
its stock. |
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Long term
funds are provided by ownership equity
and long-term credit, often in the form
of bonds. The balance between these
forms the company's capital structure.
Short-term funding or working capital is
mostly provided by banks extending a
line of credit. |
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Financial
management is duplicate with the
financial function of the Accounting
profession. However, financial
accounting is more concerned with the
reporting of historical financial
information, while the financial
decision is directed toward the future
of the firm. |
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Experimental finance aims to establish different
market settings and environments to observe
experimentally and provide a lens through which
science can analyze agents' behavior and the
resulting characteristics of trading flows,
information diffusion and aggregation, price
setting mechanisms, and returns processes.
Researchers in experimental finance can study to
what extent existing financial economics theory
makes valid predictions, and attempt to discover
new principles on which such theory can be
extended. Research may proceed by conducting
trading simulations or by establishing and
studying the behaviour of people in artificial
competitive market-like settings. |
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