All Businesses need money to operate. In fact, finance is the lifeblood of the business. A business concern should have proper amounts of capital, because an inadequate capital will hamper operations and too much capital means that earnings will have to be spread over an unnecessary large amount of capital. There should, therefore, be proper financial planning.
Aspects of Financial Planning:
- Capitalisation
- Capital Structure
- Sources of Finance
FINANCIAL SERVICES:
“Financial Services” means mobilizing & allocating the savings for different purposes. It includes all the activities involve the transformation of savings in to investment. The financial service can also be called financial intermediation. The financial service institution acts as the intermediary between the savers & the investors.
The financial intermediaries mobilise the savings in different forms, traditionally they are of two categories.
- Money market intermediaries.
- Capital Market Intermediaries.
Capital market intermediaries provide the long term investments through capital market i.e. by purchasing the different types of securities like shares, bonds, etc…
Money market intermediaries mobilize the savings for term purpose through different money market instruments like Commercial Papers, Treasurer Bills, etc… Read more…
