The most basic financial concepts would be the balance sheet. Everyone should know what the assets and liabilities consists of and their importance in one’s life. The balance sheet is the representation of all the assets and liabilities that a person or a company holds. It’s the fundamental document which shows what the company actually owns and what is its debt. In business terms, assets are your pros and liabilities are your cons. You need assets to offset your liabilities. In layman terms, an asset is something that puts money in your pocket. According to the successful businessmen and pioneers of financial management, one must work on increasing his assets column because they help you to payoff your liabilities. If you want to learn more about finance, enrolled at career aptitude test classes.
basic financial concept
that everyone should learn
concepts of financial risk management
The top-down approach is not infallible. Things can always go wrong. Sometimes, unexpected occurrences change the outlook for an industry/company completely and catch you off-guard. The ability of such events to induce a divergence from the expected performance of a company. This is called risk. It must be noted though, that divergence can be positive and negative. When we assess risk, we are predominantly concerned about the negative events that lead to negative divergence. For a business, risks have been divided into two categories – business risk and financial risk. We will take these up individually. Consult with us at office near mercedes benz houston showroom or you can consult with us via email also.
hardest financial concept
Finance is essentially a social science dealing with the interaction of agents. Social sciences are notoriously better at description than prescription, therefore expectations of what Finance may achieve should be moderate.
Finance like politics is essentially the art of dealing with disagreements on what future may hold. Sometimes, the markets orderly agree to disagree and evolve “normally” (democratic markets). Sometimes, they are just confused, nothing holds and anything may happen (revolutionary shake-up).
Academic theories are mostly descriptive and focused on the fairly benign first order risk leaving “anomalies” linked to the second order risks. You can monetize by blog using some Houston SEO services, you can get more exposure to your blog.
Most participants (not academics) would like to view Finance as the art of anticipating market moves which is linked to what market participants will believe in the future and therefore to what we know now on what we don’t know yet. A devilish question which leads to two attitudes: yield to the deadly sin of pride which leads to superstition and folly or practice the cardinal virtues of prudence/wisdom.
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