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Finance

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					INTRODUCTION



   Finance, branch of economics concerned with
    providing funds to individuals, businesses, and
    governments. Finance allows these entities to
    use credit instead of cash to purchase goods
    and invest in projects.
PLAN:
   I- History:
   II- Definitions of finance
    III- Financial law
            1. Financial law
            2. Financial system
   IV-principal fields of finance:
             1.Corporate Finance
             2. Finance of market
             3. Finance public
             4. Personal finances
   V-The steps of finance
             1. Capital budgeting:
             2. Financing:
             3. Dividend policy:
    VI- Importance of finance:
             1. Importance for Business:
             2. Importance for Distribution of Economic activities:
I- HISTORY:


   One generally dates the beginning from modern finance, as a
    field of study and research at 1958. It is as from this time that
    this discipline became an under-discipline of the economy, by
    borrowing its formalized reasoning and its mechanisms of
    optimization to him. Previously, financial management
    consisted primarily of a collection of practices.
II- DEFINITIONS OF FINANCE


   The science that describes the management of
    money, banking, credit, investments, and
    assets.
III- FINANCIAL LAW
   1. Financial law
       Financial law deals with the broad range of savings and
        investments products in which individuals, businesses
        and institutions hold trillions of dollars, and the
        services related to those products.
   2- Financial system
       The financial system is the system that allows the
        transfer of money between savers and borrowers. It
        comprises a set of complex and closely interconnected
        financial institutions, markets, instruments, services,
        practices, and transactions.
IV-PRINCIPAL FIELDS OF FINANCE:


   1.Corporate Finance
       Corporate finance is an area of finance dealing with
        financial decisions business enterprises make and the tools
        and analysis used to make these decisions.
   2. Finance of market
       Operation of the large markets on which it is possible to
        invest, to cover, or to use complex financial instruments
   3. Finance public
     Country,   state, country, city or municipality finance
        are called public finance
   4. Personal finances
        Personal financial decisions may involve paying for
        education, financing durable goods such as real
        estate and cars, buying insurance, health and
        property insurance, investing and saving for
        retirement
V-THE STEPS OF FINANCE

   1. Capital budgeting:
     Capital budgeting is the decision regarding the
      choice of which investments are to be made with
      the resources that have been brought into the
      business or earned and retained by the business;
      the choice depends on the returns to be made from
      the investment exceeding the cost of capital.
   2. Financing:
     Financing is the decision of which resources or
     funds are to be brought into the business from
     external investors and creditors in order to be
     invested in profitable projects.
   3. Dividend policy:
     Dividend policy is the decision regarding funds to
     be distributed or returned to the equity investors,
     This can be done with common stock dividends,
     preferred stock dividends, or stock repurchase by
     the business of its own stock.
VI- IMPORTANCE OF FINANCE:
   Before the industrial revolution finance was not
    considered so important for business
    organizations. Because methods of productions
    were very simple, labor was more important
    than capital and finance at that time. So these
    things didn’t create any problems.


                     But…
    Importance for Business:



    Importance for Distribution of Economic
    activities:
CONCLUSION

Thanks for your attention

				
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posted:2/17/2011
language:English
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