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PB604 - BUSINESS FINANCE
CHAPTER 1 : FINANCE MANAGEMENT
GROUP MEMBERS :
QURATULAINI BT HASRI (10DAT11F2009)
SHARIFAH NUR AFIZA BT SYED AHMAD MUSTAFA (10DAT11F2013)
NURAZARIAH BT RAHIMAN (10DAT11F2022)
NUR HUZAIFAH BT ZULKIFLI (10DAT11F2030)
1.3. DETERMINE THE DUTIES OF FINANCIAL
d) Monitoring & controlling
e) Involvement in financial market
Monitor competitor activity and stay
updated about latest industry trends.
Monitor and manage all expense within
the allotted budget.
Review financial data for accurancy,
correctness and completeness.
Oversee the overall corporate budgeting
preparation, management and
Review annual budgets and
recommend any charges if needed.
Ensure that the financial reports are
prepared and delivered on time.
Perform account reconciliation activities.
Ensure financial team follows company
policies and regulations.
Overview of Financial Markets
1) A financial market is a market in which financial
assests (securities) can be purchased or sold.
2) Financial market facilitate financing and investing by
household, firm, and government agencies.
3) Participants that provide funds are called surplus
4) Participant that enter markets to obtain funds are
e.g., the government.
5) A major participant in financial markets is the Fed,
because it controls the money supply.
Securities Traded in Financial Market
1) Money market securities :
Money market securities are debt
securities with a maturity of one year
– Low expected return
– Low degree of risk
2) Capital market securities :
Capital market securities are those
with a maturity of more than one year.
Bonds and mortgages.
Capital market securities have a higher
expected return and more risk than
money market securities.
Types of Financial Markets
1) Money versus capital markets.
– The flow of short-term funds is facilitated by
– The flow of long-term funds is facilitated by
2) Primary versus secondary market.
- Primary markets facilitate the
issuance of new securities.
- e.g., the sales of new corporate stock or new
- Secondary markets facilitate the trading of
- e.g., the sale of existing stock.
- securities traded in secondary markets should