Financial

financial
  • Cash: money or its equivalent.
  • Bank Deposits: money placed into banks, including checking accounts and money market accounts.
  • Holdings of Stocks: publicly traded stocks can be easily converted to cash, and are considerer financial resources of an organization. This stocks are traded on stocks exchanges, like the NASDAQ or the NYSE. It takes only a few minutes to sell stocks on the market.

The capital market is a set of institutions through which the supply and demand of long and mid term means of financing, like stocks and mid- and long-term debt, meet.

Through the monetary market, unlike the capital market, short term assets are bought and sold. Together, the capital markets and the monetary market form the financial market.

Examples of assets traded in the capital market:
- Stocks.
- Long term government bonds.
- Long term corporate bonds.

Planning

Financial planning is a process that evaluates the situation of a business in relation to it’s financial resources and needs and determines how to manage the liquid assets, taking the future inflows and outflows of funds into accounts.

Good policies to minimize credit risk.

Dollars

The financial resources of an organization are the set of liquid assets:
- Cash.
- Short term bank deposits.
- Liquid financial investments, like stocks and bonds.

Financial resources are used to carry out the main operations of the business, like buying goods and services, and to carry out long term investments.

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