Corporate Finance

Finance concerning corporations is a lot more complicated compared to personal finance. However, the same finance principles are applicable but this time, only on a much larger scale. The amounts involved could easily run into several millions while personal finance often involves middling amounts in several thousands or hundreds of thousands. The tricky part of corporate finance is when a corporation needs to raise additional funds. Two choices are usually available. The first avenue is to go to a bank and apply for a loan. The second option is to raise capital in the financial markets with the issuance of equity shares or by debentures and other forms of secured indebtedness. The first option being mentioned earlier has the disadvantage of diluting the existing owners’ share holdings but the benefit is that equity is considered as a debt in perpetuity. There is no fixed due date on capital raised from equity markets since these funds do not become due and payable in the same manner as a bank loan.

Switch to Corporate Finance

The hurdle for most chief finance officers in big firms is how to keep these investors happy with a sufficient level of dividend declarations that will compensate their risked capital adequately. Corporate finance has become so complicated that chief executives find the need to hire finance experts and geniuses to look after a big firm’s finances. In the increasingly complex and competitive global market, an astute finance executive can swing a firm’s unique skill set into a long-term competitive advantage by the use of creative and imaginative forms of financing that will ultimately lower the cost of doing business.

Site Name: Corporate Finance – Euromoney
Domain Name: http://www.corporatefinancemag.com
Summary: This site is the on-line version of one of the more respected finance magazines you can find nowadays. Topics such as managing risks, managing capital and most of all, managing cash are very relevant today.

Site Name: Careers in Finance
Domain Name: http://www.careers-in-finance.com/cf.htm
Summary: A good site for job hunters interested in pursuing careers in corporate finance. Anyway, the site gives an overview on what to expect once you land that job such as giving importance to flexibility and liquidity when managing a firm’s cash on hand.

Site Name: The McKinsey Quarterly
Domain Name: http://www.mckinseyquarterly.com/Corporate_Finance
Summary: This is the magazine of the venerable and highly-respected management consulting group. I find many topics discussed as particularly relevant in these times.

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