Finance
Finance is the application of the principles of financial economics to an inter-related set of monetary problems. In the case of a company, this generally involves balancing risk and profitability and is typically called managerial finance or corporate finance. Investment theory is concerned with the identification of an optimal portfolio of assets, given a set of objectives and constraints, as well as with the valuation of assets. Finance can also be used by individuals (called personal finance), and by governments (called public finance).Finance involves:
- Investment management and valuation
- Financial markets, financial instruments, and financial institutions
- The risk-return framework and the identification of the asset appropriate discount rate
- Valuation of assets - discounting of relevant cash flows; relative valuation; contingent claim valuation
- The optimum allocation of funds - What to invest in
- How much to invest - When to invest
- Corporate and Managerial
finance
- Cash flow budgeting and working capital management
- Comparing alternative proposals
- Forecasting and risk analysis
- Obtaining funds - debt or equity sources - long term or short term - optimum capital structure
- allocation of funds to long term capital investments, vs optimize short term cash flow
- Dividend policy
- Wealth management
and personal finance
- How much money will be needed by an individual (or a family) at various points in the future?
- How is that need to be funded?
- Public finance
- Identification of required expenditure of a public sector entity
- Source(s) of that entity's revenue
- The budgeting process
Finding Finance Articles
- Fundamental Financial Concepts
- Annuity
- Arbitrage
- Balance sheet
- Business plan
- Business valuation
- Capital (economics)
- Capital asset pricing model
- Cash flow
- Cash flow matching
- Debt
- Discounted cash flow
- Financial capital
- Entrepreneur
- Gap financing
- Hedging
- interest rate
- Investment
- Leverage
- Locked-in value
- Liquidity
- Mark to future
- Mark to market
- Market Impact
- Medium of exchange
- Money
- Portfolio
- Reference rate
- Risk, Value at Risk
- Scenario analysis
- Short selling
- Speculation
- Standard of deferred payment
- Store of value
- Time horizon
- Time
value of money
- Present value
- Future value
- Discounting
- Unit
of account
- Financial
Markets
- Commodities
- Securities
- Capital markets
- Stock
- Common shares
- Preferred shares
- Stock market
- Equity investment
- Private Equity
- Financial reports
- Fundamental analysis
- Dividend
- Stock split
- PE Ratio
- Income per share
- economic value added
- mergers and acquisitions
- Dow Jones Industrial Average
- Nasdaq
- Stock market crash
- Stock market bubble
- Technical
analysis
- Chart patterns
- Dow Theory
- Elliott Wave Theory
- List of stock exchanges
- List of stock market indices
- Bond market
- Derivative
securities
- Underlying instrument
- Derivatives market
- Equity derivative
- Forward contract
- Futures
contract
- Financial futures
- Futures exchange
- Options
- Stock
option
- Call option
- Put option
- Strike price
- Put-call parity
- The Greeks
- Black-Scholes formula
- Black model
- Binomial options model
- Implied volatility
- Option time value
- Moneyness
- Option style
- Vanilla option
- Exotic option
- European option
- Bermudan option
- American option
- Quanto option
- Asian option
- Warrants
- Foreign exchange option
- Interest rate options
- Bond options
- Options on futures (see Futures)
- Stock
option
- Swaps
- Swaption
- Interest rate linked derivatives:
- Financial future
- LIBOR
- BBA LIBOR
- Forward rate agreement
- Interest rate swap
- Interest rate cap
- Exotic interest rate option
- Credit
derivatives
- Credit default swap
- Collateralised Debt Obligation
- Credit default option
- Total return swap
- Money market
- Primary market
- Aftermarket
- Free market
- Efficient market hypothesis
- Bull market
- Bear market
- Ponzi
scheme
- Fund
management
- Passive management
- Activist shareholder
- Mutual fund
- Hedge fund
- Long-term
Capital Management
- Financial institutions
- Financial supervision
- Economics and Finance
- Mathematics and Finance
- Financial mathematics
- Internal rate of return
- Net present value
- Brownian motion
- Girsanov's theorem
- Radon-Nikodym derivative
- Monte Carlo method
- Risk-neutral measure
- Value at Risk
- Stochastic calculus
- Probability
- Expected value
- Partial differential equations
- Constraint Finance
- Personal finance
- Public
finance
- tax, tariff and trade
- industrial policy
- agricultural policy
- currency union
- The History of Finance
- Tulipomania 1620s
- South Sea Bubble 1710s
- Railway mania 1840s
- Wall Street Crash 1929
- Great Depression 1930s
- Black Monday 1987
- Asian financial crisis 1990s
- Stock
market downturn of 2002 2002
Finding related topics
- list of accounting topics
- list of management topics
- list of human resource management topics
- list of marketing topics
- list of economics topics
- list of information technology management topics
- list of production topics
- list of business law topics
- list of business ethics, political economy, and philosophy of business topics
- list of business theorists
- list of economists
- list of corporate leaders
- list
of companies
Links
- For a Hypertextual Finance Glossary, see Prof. Campbell R. Harvey: http://www.duke.edu/~charvey/Classes/wpg/glossary.htm
- For material covering three areas in finance - corporate finance, valuation and investment management, see Prof. Aswath Damodaran: http://pages.stern.nyu.edu/~adamodar/
- For articles on current corporate finance and investment issues, visit Oaktree Research, a financial education portal: http://www.oaktree-research.com
- For illustrative (simpler) worked examples covering several of these topics: http://www.teachmefinance.com
- For introductory articles covering mathematical finance: http://www.quantnotes.com/fundamentals/\n