Essentials of Finance

This book intends to present a descriptive analysis of the financial management, financial institutions, and financial portfolios and show that they are all interconnected components of the global financial system. Furthermore, each of these components plays an important role in promoting economic growth and development. Successful financial management requires the development and administration of financial portfolios that are tailored to match the goals and objectives of individual investors or institutions. This can be accomplished by constructing and managing financial portfolios that are diversified. In addition to this, financial institutions, such as banks, investment firms, and insurance companies, play an essential part in the functioning of the global economy. These institutions are responsible for the provision of financial services, the collection of deposits, and the funding of new businesses and initiatives. Financial management and institutions are not risk-free, as evidenced by the series of financial crises that have taken place over the course of the last few decades.