Question

Need 300 words discussion Provide an example of the investment and financing decisions that financial managers make and  Please identify and describe one of the financial market

Answer 1

Financial administration alludes to the procurement, financing and the board of benefits. This basic leadership procedure is delicate and must be under the influence of a Financial manager to investigate outer and inner factors that can influence the typical improvement of organization exercises.

A financial manager is responsible for taking the following different specimen decisions:-

• Ventures (or Investments):-
  • In the ventures zone, the Financial Manager is in charge of characterizing the ideal size of the organization. In such manner, it is imperative to have a market study set up and be sure about the targets that the organization needs to meet. It is critical to have appropriately contemplated the interest, innovation and gear, financing techniques and HR available.In second place, the executive must dissect whether the assets adjust to the ideal size wanted for the organization. On the off chance that they don't, it is important to characterize the sorts of benefits that the organization must obtain, or generally sell or dispose of, so as to accomplish proficient administration.
• Liquidity (or Financing):-
  • Characterizing a financing technique is basic to the progression of the business over the long haul. Access to financing is firmly related with keeping up a consistent inflow of capital since the reserve funds edge won't enable tasks to proceed for any longer without the help of extra liquidity. The Financial Manager must characterize a few parts of the financing methodology. For instance, study the sources willing to offer credit to the association, and characterize the best financing alternatives for tasks. The Financial Manager can likewise structure a blended financing technique for effective monetary administration: this is known as the organization's "financing blend". Once in a while the organization can profit by a blend of short and long haul financing to meet speculation and budgetary technique destinations.
• Resource management:-
  • Resource management is one of the primary perspectives for an organization to sufficiently meet its commitments and thus to position itself to meet the destinations or development focuses on that have been spread out. As it were, the Financial Manager must stipulate and guarantee that the current resources are overseen in the most proficient manner conceivable. By and large, this Financial Manager must organize current resource management before fixed resource management. Current resources are those that will wind up successful sooner rather than later, for example, records of sales or inventories. On the other hand, fixed resources need liquidity since they are required for changeless tasks. This incorporates workplaces, distribution centers, apparatus, vehicles, and so forth.
• Profit (or Dividend) Arrangement:-
  • One of the most significant monetary choices that a Financial Manager must make is identified with the organization's profit approach. It concerns the amount of the organization's income will be paid out to investors. In particular, it is important to decide whether produced income will be reinvested in the organization to improve tasks or on the off chance that they will be circulated among investors. It is additionally conceivable to pick a blended arrangement in such manner, appropriating a section among investors and putting the rest in the organization. In any case, if the profits conveyed are excessively high, the organization may experience impediments to grow or improve the administration of its activities. It is essential to think about that so as to have development viewpoints over the long haul, momentary reinvestment are vital.

One of the popularly know financial market is DJIA (Dow Jones Industrial Average) or just the Dow.

• Dow is a financial exchange record that demonstrates the estimation of 30 huge, openly possessed organizations situated in the US, and how they have exchanged the securities exchange during different periods.These 30 organizations are additionally incorporated into the S&P 500 List. The estimation of the Dow does not speak to its part organizations' market capitalization, yet rather the whole of the cost of one portion of stock for every segment organization. The aggregate is adjusted by a factor which changes at whatever point one of the segment stocks has a stock part or stock profit, in order to create a steady an incentive for the list. It's anything but a precise portrayal of the US market or all out market.