Financial Management Essay Example | Topics and Well Written Essays - 3000 words

Financial Management - Essay Exampleon lies with the management in procuring funds from economic sources, it is also necessary to intend the effects of such acquisitions from the companys point of view. Therefore, the financial sagacity of any business imply in how economically such funds atomic number 18 procured.It includes administration and maintenance of financial assets. From the point of view of the organisation financial management is the processes associated with the mobilization of funds from the various sources when needed at an acceptable bell which is called Financing Decision through banks and other financial institutions, and control the fund flow by monitoring their use to ensure the procurement and deployment of funds fit to the plan. (Financial Management).Northern PLC is a manufacturing company which has sub-divisions globally. The company is facing deficiency of funds. There are many sources for financing the company through Capital market (through Shares, Deb t Securities, and bet on Capital).Capital market is the place where government, institutions and individuals trade financial securities for funds. Two major heavy(p) markets are stock and bond market. Some of the examples of the capital are hot York Stock Exchange (NYSE), American Stock Exchange (AMEX). It provides economic efficiency by channelling money from those who have no immediate productive use. In capital market the cash or savings which is risk free are converted into risky assets for the benefit in the future. If the company is not acting tumefy then there will be decrease in the share price of the company which would result in the dissatisfaction of the shareholders like the suppliers, customers and other stakeholders of the company. If the company is performing well, the share price increases and because of this the shareholder gets the benefit as dividends. The company that is giving the regular dividend has a slight edge. (Woepking).1. Weak form efficiency- In t his the share price reflects the