Financial Market and its Management

Financial Market and its Management

Financial Market and its management refer to the efficient and effective management of money in such a manner to accomplish the objectives of the organization. It is the specialized function directly associated with the top management. It includes how to raise the capital and how to allocate capital. It also deals with the dividend policies of the shareholders.

Some definition of financial management are described below –

According to C.van Home – “Financial Management is the managerial activity which is concerned with the planning and controlling of the firm’s financial resources.”

According to James Van Mane – “Planning is an inextricable dimension of financial management. The term financial management connotes that funds flows are directed according to some plan.”

E According to Joseph Massie – “Financial Management is the Operational Activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation.”

According to Weston and Brigham – “Financial Management is an area of financial decision making, harmonizing individual motives and enterprise goals.”

Lastly, we can conclude financial management is the act of taking investing, financing and dividend decision.

Importance of Financial Management:

  • Helps to gain the ultimate result.
  • To knowledge about the process of financial management.
  • For fixing price.
  • For decision making.
  • In the case of profit earning.
  • Financing planning.
  • Rising of the thud.
  • Investment of fund.
  • Financial control.
  • Protection of capital.
  • Distribution of profit.