What is Corporate Finance? What are the financial companies

Finance is financial integration, referred to as finance.

Finance can be divided into manetary economics and financial economics by definition. Financial economics is actually new finance. There is a big difference between foreign finance and domestic finance, and everyone should be familiar with this, so I won't talk about it too much.

Financial economics is a decision-making science that studies the optimal allocation of assets along the two dimensions of time and space under uncertain conditions, so it is very microscopic and belongs to the category of management in foreign countries. In simple terms, it's about the economics of time and risk. So for the economics of time, you know that the main thing is to study the interest rate - the value of money in time.

Therefore, we look at the determination of interest rate levels and the term structure of interest rates. With these two things in place, we can freely convert cash flow between different points in time along the timeline. With the spot term structure we can have the forward term structure, and we can compare all the cash flows along the time dimension.

Otherwise, we can't measure how big the difference between today's 100 yuan and 100 yuan 100 years ago and 100 years from now is. The other is risk economics, which involves the identification of risk, the management of risk, and the pricing of risk, which can be transformed into deterministic value if risk can be measured. This is the temporal dimension.

Then the spatial latitude is the spatial configuration of the asset. The value of risk is not the same for each asset, and it is impossible to compare them without conversion. So after the pricing is finished, it is discounted into a deterministic equivalent.

When all things are converted into deterministic equivalents, they are equivalent to two coordinate axes, a time axis and a space axis, and then the intersection points, along different axes can be compared, with the intersection point as the center.

In fact, it is the company's finance, which studies the management and use of the company's funds, including the financing of the enterprise, the use of capital, dividends and a series of issues.

The essence of finance is the circulation of value. There are many types of financial products, including banks, insurance, trusts, etc. Finance involves a wide range of academic fields, which mainly include:

Accounting, Finance, Investment, Banking, Insurance, Trust, etc.

Finance is a trading activity, and financial transactions themselves do not create value, so why is there money to be made in financial transactions? According to Mr. Chen Zhiwu, financial trading is a way to monetize future income, that is, tomorrow's money is spent today.

To put it simply, the frequency of financial transactions is an important indicator of a region's, regional, or even a country's ability to thrive.

Financial companies (also known as financial companies) are an extremely important class of financial institutions in Western countries. Its funds are mainly raised by issuing commercial paper in the money market, issuing ** and bonds in the capital market; It also borrows from banks, but the proportion is very small. The pooled funds are used to lend to consumers who buy consumer durables, renovate their homes, and small businesses.

Ping An car owner loan] can get a loan if you have a car, up to 500,000.

The four major sectors of finance: banking, insurance, **, and trust.

Other financial accounts include: ** company, financial leasing, finance company, asset management company.

**Company: Raise funds from customers to invest in the capital market.

Financial leasing companies: the prospects are good, and there is great potential for development in the context of the policy of credit tightening.

Asset management companies, trust companies.

All of them have the function of managing wealth on behalf of customers.

Extended information: 1. Financial products refer to a variety of non-physical assets with economic value that can be publicly traded or cashed, also known as valuable, such as cash, bills of exchange, bonds, insurance policies, etc.

For example, we can buy any commodity with cash, including financial products; We can go to the banker's acceptance bill (turned into cash): we can buy and sell (trade) at will in the corresponding financial market**, **, etc.; The bonds, insurance policies, etc. we hold can be cashed in (turned into cash) at maturity.

2. Classification of financial products:

1. Financial products can be divided into two categories: basic, bonds, etc., and derivatives (advanced), such as options, etc.;

2. According to the ownership attributes, financial products can be divided into property rights products such as **, options and warrants.

and debt products such as treasury bills and bank credit products. The former is a property right relationship, and the latter is a creditor's right relationship.

3. According to the expected return, financial products can be divided into non-fixed income products.

Such as **, options, **, etc., and fixed (also called structured) products such as various bonds and credit products.

4. According to the length of time, the degree of risk and the trading venue, financial products can be divided into short-term products, long-term products, low-risk products, high-risk products, currency (market) products and capital (market) products and many other categories.

3. Classification of financial instruments:

By intermediary characteristics:

Direct financial market: A market formed by direct financing by both the supply and demand of funds.

Indirect financial market: A market formed by banks and other financial institutions as intermediaries for financing.

Divided by the duration of the transaction.

Money market: A short-term capital market with a financing period of less than one year.

Capital market: a long-term capital market with a financing term of more than one year.

According to the trading procedure, it can be divided into:

Primary market. Issuing market):

The market that is formed when a fundraiser first gives financial instruments such as bonds, and notes to investors.

Secondary market. Circulation market):

A market in which issued**, bonds, notes, etc., are bought and sold among different investors.

According to the delivery time, the phone bill is also:

Spot market: A market that trades in the form of "clearing money and goods" after the transaction.

**Market: A suitable market for trading in the form of delivery at an agreed future time after the transaction.

Financial companies include deposit-taking institutions, ** banks, and other financial companies. Other financial companies are mainly those companies that are engaged in financial intermediation or ancillary financial business that has a close relationship with financial intermediation, but are not included in the deposit-taking institutions, including insurance companies, pension companies, traders, investors, finance companies, leasing companies and financial auxiliary economic institutions.

A financial investment company is an investment company that makes equity investment in financial enterprises, exercises the rights of investors and fulfills the obligations of investors in financial enterprises in accordance with the law to achieve the preservation and appreciation of financial assets, and can also be understood as a kind of financial intermediary, which concentrates the funds of individual investors and invests in many ** or other assets.

Finance is a general term for monetary and financial integration. It mainly refers to various activities related to money circulation and bank credit.

1.Finance is a general term for money circulation and credit activities and related economic activities, and finance in a broad sense refers to all economic activities related to the issuance, custody, exchange, settlement, and financing of credit currency, even including the purchase and sale of gold and silver, and finance in a narrow sense refers to the financing of credit money.

The content of finance can be summarized as the issuance and withdrawal of currency, the absorption and payment of deposits, the issuance and payment of loans, the trading of gold and silver and foreign exchange, the issuance and transfer of valuable money, insurance, trust, domestic and international currency settlement, etc. Institutions engaged in financial activities mainly include banks, trust and investment companies, insurance companies, ** companies, as well as credit cooperatives, finance companies, financial leasing companies, **, gold and silver, foreign exchange exchanges, etc.

2.The major of finance mainly cultivates students who have the basic knowledge of financial and insurance theory and master the technology of financial and insurance business, can use the general methods of economics to analyze financial and insurance activities, deal with financial and insurance business, have a certain comprehensive judgment and innovation ability, and can be able to be able to lead banks, commercial banks, policy banks, ** companies, life insurance companies, property insurance companies, reinsurance companies, trust and investment companies, financial leasing companies, financial asset companies, group finance companies, investment** Senior specialists working in the corporate and financial education sectors. The main directions of finance include monetary banking, commercial bank operation and management, banking, international finance, international settlement, investment, investment project evaluation, investment banking, corporate finance, etc.

3.Features: 1) Credit.

Credit in economics is a form of commodity trading that corresponds to spot trading (transactions settled instantly).

Credit is the foundation of finance, and finance can best reflect the principles and characteristics of credit. In a developed commodity economy, credit has become integrated with the circulation of money.

2) The proper characteristics of credit transactions.

a.One party transfers ownership of commodities (including currency) to the other party on the condition that the other party repays them, or part of the power;

b.There is a certain time lag between the prior transfer of ownership of the goods or its power by one party and the relative repayment of the other party;

c.The party that delivers first needs to bear a certain amount of credit risk, and the occurrence of credit transactions is based on giving trust to the other party.

2.In principle, finance must be aimed at money.

3.Financial transactions can take place between various economic components.

1. Lexin Group.

Founded in August 2013, Lexin Group has a number of businesses, among which the P2P business is in charge of Orange Finance. The main businesses include: Internet wealth management brand Orange Wealth Management, quality installment shopping platform Installment Paradise, financial asset open platform Dingsheng Assets, etc.

Lexin Group, which currently shares shares in U.S. dollars and has a total market capitalization of 100 million U.S. dollars, was listed on the NASDAQ on Thursday, December 21, raising $100 million.

2. Dianniu Finance.

The main body of Dianniu Financial Business is Shanghai Dianniu Internet Financial Information Service, headquartered in Shanghai, established in November 2015.

It is a new type of Internet financial information service application, Dianniu Finance is a platform focusing on capital bank depository, focusing on the auto loan market, relying on the core technology of intelligent risk control, and its operating platform: Dianniu Finance. U.S. Stocks**:

DNJR, whose share price is in US dollars, has a total market capitalization of $66.93 million.

3. Pat Pai Loan.

Founded in June 2007, the full name of the company is "Shanghai Paipai Financial Information Service", headquartered in Shanghai, and is one of the largest online credit lending platforms in China. Paipai is listed on the New York Stock Exchange, the current stock price is US dollars, and the company's total market capitalization is 100 million US dollars.

4. Rongjin Institute.

Rongjin is a P2P platform under Shenzhen Rongjin Capital Management Group, headquartered in Futian District, Shenzhen, committed to providing safe and effective loan services for small and medium-sized enterprises in need of funds.

5. Yiren loan.

Yirendai was launched by CreditEase in 2012, and on December 18, 2015, Yirendai was successfully listed on the New York Stock Exchange in the United States. Through the Internet, big data and other technological means, Yirendai is committed to providing efficient and convenient personal credit lending and lending services.

Yirendai's current share price is in US dollars, with a total market capitalization of USD 100 million.

Financial enterprises include state-owned commercial banks, postal savings banks, trust and investment companies, joint-stock commercial banks, financial asset management companies, financial leasing companies and some financial companies.

Extended Materials. Financial enterprises refer to enterprises that need to obtain financial business licenses granted by financial regulatory authorities to perform business, including postal savings banks, state-owned commercial banks, joint-stock commercial banks, trust and investment companies, financial asset management companies, financial leasing companies and some financial companies that need to obtain banking business licenses for practice; ** company, ** company and ** management company that need to obtain ** business license to practice; Various insurance companies that need to obtain insurance business licenses to practice.

Article 3 of the Financial Rules for Financial Enterprises stipulates that: "Financial enterprises shall, in accordance with the provisions of these Rules and the needs of their own development, establish and improve their internal financial management systems, set up functional departments for financial management, and allocate professional financial management personnel, comprehensively use planning, planning, budgeting, control, supervision, assessment, evaluation and analysis to raise funds, operate assets, control costs, distribute revenues, allocate resources, reflect operating conditions, and prevent and resolve financial risks. Achieve business continuity and maximize value.

Basic Requirements: 1.Establish and improve the internal financial management system. It includes the basic financial system of financial enterprises and the internal regulations and methods on fund management, asset management, cost management, expense management, non-operating income and expenditure management, revenue management, etc.

2.Set up a financial management function. In order to centralize the management of financial matters and facilitate the separation of responsibilities, financial enterprises should set up functional departments for financial management, specifically perform the financial management functions and powers of the financial enterprise operators, and assume corresponding responsibilities.

3.Equipped with professional financial management personnel. Personnel engaged in the financial management of financial enterprises must be professionals who are familiar with financial and accounting knowledge and have accounting qualifications.

Basic approach. The basic methods of financial management include planning, planning, budgeting, control, supervision, assessment, evaluation and analysis, etc., which is one of the basic signs that distinguish financial management from accounting management.

Essentials. The "Rules" summarize the elements of financial management into six aspects: risk prevention and control, fund raising, asset operation, cost control, revenue distribution, and information management, and put forward normative requirements one by one.