Purpose of Finance

 

Personal finance: decisions concerning saving, investment and debt and on the management and the valuation of investments.

Dealing with: financial markets, securities, financial institutions, the performance of risk and identification of the discount rate of assets, valuation of assets, assessment of, contingent valuation, optimal allocation of funds (in what to invest, how much to invest when invest);

Corporate finance: the case of decisions about how companies use their capital. It deals with: Quote of the cash flow and management of working capital, comparison of alternatives, prediction and risk analysis, obtaining funding, sources of debt (long, medium or short term) or capital (in the sense of ownership), optimal capital structure, allocation of funds on capital investment in the long term, compared to the optimization of cash flow in the short-term dividend policy;

Public Finance: covers the management of resources by the government.
It deals with identification of the costs required by an entity of the public sector, the source / s of income of that entity, a process of estimation;

International finance: economic studies the relationship between different countries, as well as analytical models which allow to interpret them;

Finance ethics: born to support the activities of human and social environment, offering an alternative to traditional financial mechanisms refuse without background.

Its reference point is the person, not the capital, with the objective of ensuring credit to the persons concerned without collateral requirements. Does not discriminate among recipients on the basis of sex, religion and heritage, currency as well as valid forms of security that allow access to credit to the weakest.

It deals with: credit, in all its forms, regarded as a human right; finance activities to promote human, social and environmental, jointly taking into account criteria for economic and social. Does not consider legitimate the enhancement based solely on the possession and exchange of money and follows the rule of transparency, such that the financial intermediary is with the utmost confidentiality of information relating to the savers. Depositors, in turn, have the right to know the processes behind the functioning of the financial affairs and its decisions, having the opportunity to participate directly in the choices of the firm. Excludes all those financial relationships that have to do with economic activities that impede the development of the person and violate human rights.

 

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