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3. Corporate finance, capital markets, and investments Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. Below is
3. Corporate finance, capital markets, and investments
Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. Below is a set of decisions made by finance professionals. Categorize the decisions according to the area of finance to which they belong.
Decision | Corporate Finance | Capital Markets | Investments | |
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Andrew, the chief executive officer (CEO) of ABC Corp., must make decisions that help achieve the primary goal of the corporation: maximize shareholders wealth. |
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Rafael, a trader at the New York Stock Exchange (NYSE), executes the decisions made by investors and takes action based on requests by different buyers and sellers in the market. |
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Caesar works for a financial advising firm. He must create a financial plan and come up with a list of securities in which his client can invest. Caesar must make decisions regarding the investments that he should recommend to his clients to include in their portfolio. |
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