Project Management and Financial Markets

Angel Lucena Albala

Erasmus´s students Siedlce

FINANCIAL MARKETS

Corporate finance is an area of finance that focuses on how companies can create value and keep it through the efficient use of financial resources.

the purpose of finance is to maximize value for shareholders or owners. finances are strongly related to two other disciplines : economics and accounting.

* The 4 most important decisions of corporate finance

1. The determination to invest.

Deepen the study of those assets, whether tangible or intangible, for which the company would have to bet .

2. The investment decisions .

Observe the obtained funds ( coming from investors who welcomed assets pledged by the company) with the mission of the entity will receive the assets which it has invested .

3. Determinations on earnings.

We study and criticism balance figures organism is performed. This leads to a premium to the equity capital and financial means to strip the company requirements.

4. The resolutions of the board .

Responsible for deciding all daily financial transactions.

. What is the economy?

-Economics is the social science that studies the choices that individuals, companies, governments and whole societies do to address the shortage and the incentives that influence those choices and reconciled.

-Social sciences and dedicated to the study of production processes and exchange, and analysis of the consumption of goods (products) and services. As humans meet their unlimited needs with limited resources that have different uses.

Corporate Finance:

It is used as a term to refer to the department within a company that has the obligation to supervise all financial activities and debt. These activities range from managing relations with Banks, investment bankers and accountants, to supervise loan negotiations and determining financing needs of the corporation.

-For example, administration of a newspaper company believes it needs a new production facility, it is the responsability of the finance department to determine the best way to finance this capital expenditure.

If interest rates are low and this company has a good relationship with your bank the finance department could arrange a loan with the bank.

-Another alternative would be to issue and sell corporate bonds to finance the project. In this case, the finance department would work with the investment bank company to issue and sell the bonds to the public.

Accounting:

It is a systematic process of identifying, classifying, measuring, interpreting and communicating financial information.

It reveals profit or loss for a given period and the value and nature of a firm´s assets, liabilities and owner equity.

* Accounting provides information on the resources and the results achieved through their use.

It establishes financial accounting statement or that summarizes the financial situation of a company to allow decision-making shareholders, investors, creditors, owners and other.

* Unlike accounting which aims to reflect as accurately as possible, transactions of the company; finance focus on the future of it, but through the study of value.

* -Corporate Finance are necessary because they help prevent results

-Improve understanding of financial issues

-good driving decissions by investors

-Represent an approach to the reality of the company

-Provide data for prediction and control of the business

FINANCIAL STATEMENTS

What are the financial statements?

The financial statements of a company are the documents that reflect its economic situation and assets, which allow diagnose their strengths and weaknesses in the financial area and help to increase the life and performance of your company. The reports are usually prepared anually, although revenue reports must prepare monthly or at least quarterly.

Mandatory results

A legal level, corporations are required to prepare