Financial Management/Market

Financial Management: Whether your organization has lost, achieved, or exceeded financial expectations, financial managers must constantly make smart decisions to push the organization forward in the competitive and uncertain landscape. Therefore having an agile finance function that’s able to course-correct quickly in any condition is key.

What is Financial Management?

Financial Management deals with a commanding, organizing, and overseeing financial affairs in order to achieve or accomplish tasks that have been set by an individual or organization. It involves the utilization and attainment of funds into subcategories where they would be put into proper use. A financial manager is someone who oversees the financial affairs and resources in an organization. They take responsibility for the financial results, plans, and tasks in an organization. Financial managers can work in any institution as long as finance is needed. They can work in places like banks, insurance companies, etc. and help advise its officials on the way to handle financial matters.

What are the Elements of Financial Management?

There are major elements to financial management. In any organization, these elements are considered before taking any steps involving finance; they include;

The first step to take in any organization is planning, the company is required to set out goals and tasks that are to be completed within a specific time frame. After these goals have been set out, the next thing is to set out materials that would be used in achieving these goals. These materials could range from funding to office equipment and the employment of persons as the case may be.
The control stage involves the process of questioning and checking the efficiency of the financial affairs of the company. The employees handling this aspect of the company are required to ensure and ensure the smooth running of the company’s financial projects right after the plans have been made. All these plans have to be accounted for by the persons in charge of them.
In the organization stage, the employees involved in the financial affairs of the company are tasked with utilizing the resources which have been set out by the organization to complete the projects which are to be completed. The persons involved are responsible for preventing a breach in the policies and procedures regarding the financial affairs of its company.
This is considered as the final stage in financial management, in this stage, the employees are tasked with making the right choices that would benefit the company’s financial status. Such choices could involve how to reinvest the company’s funds that will benefit the company financially or channeling the funds to the right places that would yield a lot of interest.

What are the Importance/Benefits of Financial Management?

Some of the importance of financial management include;

  • Ability to invest in projects that can yield great returns.
  • Ensuring proper utilization of funds and channeling them to the appropriate places.
  • Increase in the influx of profits in the company.
  • Ability to meet up or maintain the company’s expenditures.
  • Ensuring the availability of funds used to keep the company running smoothly.

What is financial Marketing?

A financial market is a place where properties are traded between buyers and sellers at low-cost prices. Such places include; stock markets, bond markets, real estate, etc. and the properties being sold could range from stocks to bonds, estate properties, and precious metals. More so, financial marketing is a process of trading financial securities between investors and traders at a low cost.

What are the Divisions of Financial Marketing?

Finance marketing is divided into four subsections, they are;

The capital market is a subdivision of a financial market that involves long term debt and investment trade. On one hand, traders are willing to sell financial securities while the buyers acquire them for long term use and development. Organizations such as the Securities and Exchange Board of India (SEBI), United States Security and Exchange Commission (SEC), Bank of England (BoE), stand to protect traders against contract breaches and oversee the smooth running of investments.
Unlike the capital market, the money market ensues trading of financial securities between investors for short term maturity date. This market comprises organizations seeking to borrow a loan from financial intuitions. Tools used in the money market include; bills of exchange, commercial paper, deposits, federal funds, etc.
Also known as the New Issue Market (NIM), which involves an organization giving out financial collaterals to investors in order to prolong and develop the life span of the organization. The primary market releases a public statement, offering stocks or bonds to potential investors whose investments will benefit the company. An example of a primary market is the initial public offering (IPO), which is issued the first time that financial collaterals are offered publicly.
A secondary market is a place where investors trade with their properties. The secondary market is what most of the public refers to as the stock market, even though these stocks have already been issued in the primary market when they were issued for the first time. The National Stock Exchange (NSE), New York Stock Exchange (NYSE), London Stock Exchange (LSE), are all examples of the secondary market.

What are the Importance/Benefits of Financial Marketing?

Some of the importance of financial marketing include;

  • Giving access to capital to start up or finance already existing businesses.
  • It allows organizations to make business transactions through credit instead of using cash.
  • Allows for the exchange of financial collateral.
  • It offers great employment opportunities.
  • Gives information on the value of financial securities to potential investors.

Conclusion

Financial management plays a crucial role in an organization, these roles can range from proper allocation of funds to helping increase the financial value of a company. It is important that every individual or organization inculcates financial management into their system. Hiring professionals who will take care of the financial affairs of a company is also advised.

Financial marketing, on the other hand, has their roles to play in an organization. Financial marketing seeks to help expose a company to potential investors, it also seeks to enable a trader to be able to sell their properties through some institutions which help organizations to communicate in a safe environment with little to no issues. These institutions are also avenues that bring organizations or fellow investors closer.

FAQs:

What is financial management?

Financial Management deals with a commanding, organizing, and overseeing financial affairs in order to achieve or accomplish tasks that have been set by an individual or organization.

What is financial marketing?

A financial market is a place where properties are traded between buyers and sellers at low-cost prices. Such places include; stock markets, bond markets, real estate, etc.

What are the elements of financial management?

The elements of financial management includes:
1. Planning
2. Control
3. Organization
4. Decision making

What are the divisions of financial marketing?

Finance marketing is divided into four subsections, they are;
1. Capital Market
2. Money Market
3. Primary Market
Secondary Market.

What are the benefits of financial marketing?

The benefits of financial marketing includes:
1. Giving access to capital to start up or finance already existing businesses.
2. It allows organizations to make business transactions through credit instead of using cash.
3. Allows for the exchange of financial collateral.
4. It offers great employment opportunities.
5. Gives information on the value of financial securities to potential investors.

What are the benefits of financial management?

The benefits of financial management includes:
1. Ability to invest in projects that can yield great returns.
2. Ensuring proper utilization of funds and channeling them to the appropriate places.
3. Increase in the influx of profits in the company.
4. Ability to meet up or maintain the company’s expenditures.
5. Ensuring the availability of funds used to keep the company running smoothly.

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