Functions of finance
This function is concerned with raising capital to finance an organisation’s operations and with ensuring that a company can generate sufficient revenue to cover the cost of raising this finance.
1 Financial management
2 Management accounting
3 Financial reporting
1 Financial management
One of the equal parts that the ownership of a company is divided into, and that can be bought by members of the public
Share/Stock
A share of a company providing the owner with a right to vote at shareholder meetings and to receive a part of the company profits as a dividend
Common share (equities or ordinary shares in Britain),
A place where shares in companies are bought and sold, or the organization of people whose job is to do this buying or selling
Stock exchange
A period during which most stocks (and the stock index) are rising(13) is called ______.
a bull market
This function includes the application of accounting techniques to provide management with the information to assist in planning and control.
1 Financial management
2 Management accounting
3 Financial reporting
2 Management accounting
To make new shares available for sale
To issue shares
The profit of a company that is paid to the people who own shares in it
Dividend
IPO is
initial public offering: the first sale of a company's shares to the public
A period during which most stocks fall in value is a_____________.
bear market
This function involves the collection and presentation of data about the company’s financial performance. In most countries, there are legal requirements governing the kind of statement that must be produced.
1 Financial management
2 Management accounting
3 Financial reporting
3 Financial reporting
Giving a duty, responsibility, power, etc. to somebody who has less authority than you
devolving sth to sb
A share in a company that gives the owner the right to receive a dividend (= part of the company's profit) before dividends are paid to owners of common shares, or when dividends on common shares are not paid at all
Prefference share
A financial organization, or someone working for one, that underwrites new shares when they are offered for sale
Underwriter
In order to launch an IPO, a private firm must register with ____________________, which oversees public companies, to ensure it meets all criteria.
the Securities and Exchange Commission (SEC)
Part of the finance and accounting function that is concerned with the financing of organisational activities.
Financial management
One of the people, groups, etc. that each own part of something
Part-owners
A person who owns shares in a company and therefore gets part of the company's profits and the right to vote on how the company is controlled
Shareholder
A financial investment such as a bond or share that is traded on a financial market
Security
The ______________ value of a security, which reflects what the market is willing to pay for it, rarely coincides with the ______________ value, or book value, of a share, which is assigned when the stock is issued.
market____________nominal
Finance is normally raised through...
share capital, loan capital, state finance or through internally generated funds.
A type of company in which the owners have specific tax advantages and no personal financial risk if the company should fail
limited liability company
The interest percent that a bank or other financial company charges you when you borrow money, or the interest percent it pays you when you keep money in an account:
Interest rate
AGM is
annual general meeting, a meeting that happens once every year in which a company or other organization discusses the past year's activities and elects new officers
Preference shares receive first claim on the company's ____________ in the event of a bankruptcy.
assets