Corporate Finance is the process of matching capital needs to the operations of a business.
It differs from accounting, which is the process of the historical recording of the activities of a business from a monetized point of view.
Captial is money invested in a company to bring it into existence and to grow and sustain it. This differs from working capital which is money to underpin and sustain trade – the purchase of raw materials; the funding of stock; the funding of the credit required between production and the realization of profits from sales.
Corporate Finance can begin with the tiniest round of Family and Friends money put into a nascent company to fund its very first steps into the commercial world. At the other end of the spectrum it is multi-layers of corporate debt within vast international corporations.
Corporate Finance essentially revolves around two types of capital: equity … Read More