Financial Management Articles, Finance Case Studies, Papers, Ebooks, FM Resources
Financial statements are the financial information presented in concise form and the financial information is the information relating to the financial position of the firm. Financial statements are prepared by the firm because of two main reasons: 1. To communicate with different parties about the financial position of the firm. These other parties include shareholders, …
Financial manager is an important position within the structure of any firm. A financial manager is responsible for providing financial advice and support to clients and colleagues to enable them to make sound business decisions. Financial managers oversee the preparation of financial reports, execute cash management strategies, and direct a corporation’s investment activities. Financial Manager …
The relationship between financial management and other functional areas can be defined as follows: 1. Financial Management and Production Department: The financial management and the production department are interrelated. The production department of any firm is concerned with the production cycle, skilled and unskilled labour, storage of finished goods, capacity utilisation, etc. and the cost …
Financial management is broadly concerned with the acquisition and use of funds by a business firm. In other words, FM is planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization. FM scope may be defined in terms of the following questions: 1. How large should the firm be and how fast …
Financial management is defined as the management of flow of funds in a firm and it deals with financial decision making of the firm. Financial management includes any decision made by an investor that affects his finances. In financial management the emphasis is laid on optimum utilization of funds. Financial management is important to all …
A depositary receipt (DR) is a type of negotiable (transferable) financial security that is traded on a local stock exchange but represents a security, usually in the form of equity, that is issued by a foreign publicly-listed company. The DR, which is a physical certificate, allows investors to hold shares in equity of other countries. …
Introduced to the financial markets in 1927, an American Depository Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on U.S. stock markets just like regular stocks and are issued/sponsored in the U.S. by a bank or …
As the name implies, convertible bonds, or converts, give the holder the option to exchange the bond for a predetermined number of shares in the issuing company. When first issued, they act just like regular corporate bonds, albeit with a slightly lower interest rate. This article provides an introduction to Foreign Currency Convertibe Bonds with …
A Foreign Currency Option is like an insurance policy. It is a “hedging tool” that lets you exchange one currency for another on a given date, at a prearranged exchange rate (strike price), without obliging you to do so. Like forward contracts, foreign currency options eliminate the spot market risk for future transactions. This article …
The paper investigates the empirical relevance of the negative financial spillovers hypothesis according to which fiscal imbalances in one EMU member country bid up the interest rate faced by all other participants in the currency union. This idea questions the ability of financial markets to correctly price various types of risk now that the elimination …