Posts Tagged ‘Business Plan Finance’
Introducing Stock
Stock is one of the most popular financial market instruments. Issuing shares is one other option that taken when decided to finance the company. On the other hand, stock is an investment instrument that chosen by many investors because it could provide an attractive rate of return. Shares can be defined as a sign of someone’s participation or parties (a company) in a company or limited liability company.
By enclosed the capital, then the party has a claim on corporate earnings and assets. On secondary market or in daily stock trading activities, stock prices fluctuate either increase or decrease. The establishment of stock prices is due to the demand and supply of shares. In other words, stock prices are formed by supply and demand for the stock.
Management and Working Capital
Financial management is the management of financial functions. Functions of financial management:
1. Investment decision: making decisions the use of the funds or the allocation of funds.
- Short term: the use of funds for the operation of the company.
- Long-term: investment in fixed assets.
2. Financial decision: the decisions by the election of funding sources.
- Through the issuance of shares
- Through the obligations.
3. Dividends decision: to determine whether the funds that received and the resulting from the operation will be distributed to shareholders or to be invested again. The goal of financial management: is to maximize corporate value. Benefits of financial management are to understand about what is happening around us, to solve practical problems and also explains various facts and information.
The Benefits of Savings Plus Insurance
The benefits of savings plus insurance, besides could grow your money, the risk of your life is also protected. The risk here means the life of a person. So, if the person dies, the heirs will receive compensation from the bank where he savings. However, at this time, savings products plus insurance have not been considered sufficient, because most of the interest from savings is not too high. Someone who has money generally wants their money to grow faster, but has minimum risk.
The Importance of Investment
Habit of saving is obviously very useful for our future. Saving is an act of keeping some money which is going to be used later if necessary. The more money you saved the better. There’s a saying that said “thrift is the basis of wealth“, which means if we are smart in saving a lot of money and live modestly then finally we will be able to enjoy a happy life.