What is behavioral finance
Behavioral finance is a field of study that combines psychology and economics to understand why people make financial decisions that deviate from rational behavior.
Behavioral finance is a field of study that combines psychology and economics to understand why people make financial decisions that deviate from rational behavior.
Corporate finance encompasses all aspects of finance related to an organization. These are aspects related to capital investment, banking, budgeting, etc. It aims to maximize shareholder value through short- and long-term financial planning. Any operation or aspect that involves the finances of an organization is part of corporate finance.
Corporate finance involves financing business expenses and building the capital structure of the business. It deals with the source of funds and the channeling of these funds, such as allocating funds for resources and increasing the value of the company by improving the financial situation. Corporate finance focuses on maintaining a balance between risk and opportunity and increasing asset value.
Cash management brings together all the decisions, rules and procedures that ensure the maintenance of the company's instantaneous financial balance at the lowest cost. Its primary objective is to prevent the risk of insolvency. The second being the optimization of the financial result (end income – end expenses).