PPT - Financial Market

 Page 1


Financial Market
Page 2


Financial Market
Introduction to Business 
Finance
1
Financial Planning
Business success 
depends on how well 
finance is invested in 
assets and 
operations.
2
Capital Structure
Understanding the 
resultant capital 
structure affects 
both shareholders 
and employees.
3
Risk Management
Financial decisions require balancing profitability 
and risk for optimal outcomes.
Page 3


Financial Market
Introduction to Business 
Finance
1
Financial Planning
Business success 
depends on how well 
finance is invested in 
assets and 
operations.
2
Capital Structure
Understanding the 
resultant capital 
structure affects 
both shareholders 
and employees.
3
Risk Management
Financial decisions require balancing profitability 
and risk for optimal outcomes.
Meaning of Business Finance
Definition
Money required for carrying out business activities is called business 
finance.
Applications
Finance is needed to establish, run, modernize, expand, or diversify 
business operations.
Asset Acquisition
Required for buying tangible assets like machinery and intangible assets 
like patents.
Operations
Central to day-to-day operations like buying materials and paying salaries.
Page 4


Financial Market
Introduction to Business 
Finance
1
Financial Planning
Business success 
depends on how well 
finance is invested in 
assets and 
operations.
2
Capital Structure
Understanding the 
resultant capital 
structure affects 
both shareholders 
and employees.
3
Risk Management
Financial decisions require balancing profitability 
and risk for optimal outcomes.
Meaning of Business Finance
Definition
Money required for carrying out business activities is called business 
finance.
Applications
Finance is needed to establish, run, modernize, expand, or diversify 
business operations.
Asset Acquisition
Required for buying tangible assets like machinery and intangible assets 
like patents.
Operations
Central to day-to-day operations like buying materials and paying salaries.
Financial Management
Optimal 
Procurement
Identifying and 
comparing 
different 
sources of 
finance in 
terms of costs 
and risks.
Effective 
Deployment
Investing funds 
to ensure 
returns exceed 
procurement 
costs.
Risk Control
Keeping 
financial risks 
under control 
while reducing 
cost of funds.
Liquidity Management
Ensuring availability of funds when required while avoiding 
idle finance.
Page 5


Financial Market
Introduction to Business 
Finance
1
Financial Planning
Business success 
depends on how well 
finance is invested in 
assets and 
operations.
2
Capital Structure
Understanding the 
resultant capital 
structure affects 
both shareholders 
and employees.
3
Risk Management
Financial decisions require balancing profitability 
and risk for optimal outcomes.
Meaning of Business Finance
Definition
Money required for carrying out business activities is called business 
finance.
Applications
Finance is needed to establish, run, modernize, expand, or diversify 
business operations.
Asset Acquisition
Required for buying tangible assets like machinery and intangible assets 
like patents.
Operations
Central to day-to-day operations like buying materials and paying salaries.
Financial Management
Optimal 
Procurement
Identifying and 
comparing 
different 
sources of 
finance in 
terms of costs 
and risks.
Effective 
Deployment
Investing funds 
to ensure 
returns exceed 
procurement 
costs.
Risk Control
Keeping 
financial risks 
under control 
while reducing 
cost of funds.
Liquidity Management
Ensuring availability of funds when required while avoiding 
idle finance.
Objectives of Financial Management
Wealth Maximization
Increasing shareholder 
value
Value Addition
Ensuring benefits exceed 
costs
Efficient Decision-
Making
Selecting best alternatives
Share Price Optimization
Maximizing market value of equity
The primary aim of financial management is to maximize shareholders' wealth. This is achieved 
through decisions that increase the market value of equity shares by ensuring benefits exceed 
costs.