Finance: The Root of every monetary structure

Today, the World is based upon the economy and its development. On a large scale, this development is directly related to finance.
Every business structure stands tall upon its resources and hence, the most effective way of its consumption. Common's man pocket is the most basic unit of big economies- an effect of which extends on a global level.
Today, the world believes upon investing than keeping the money into stagnant position. Eyeing upon the returns which their investment brings. Flowing money is always an optimistic sign for a healthy economy and this flow does reflect the return statistics which the invested money brings.

 

 Finance and its management have become an important skill and more than that, a craft equating to the success of businesses, organizations, and economies. Transactions are happening every other second. It is amazing to sense the fact that at any time, those magnetic chips are always working to verify your transactions.  All around the world, when one market goes off to sleep, other open up in some other area of the globe. It is all very important because with the huge network of the foreign markets in today's globalized era. Every transaction does have a direct or an indirect effect on your pockets.

Just think of the banking structure of your own nation. Banks are running smoothly on the people's money and acting as a bridge between the excess and the needs. Talk of the insurance scheme which you have opted for because that's also a great example of private finance which works upon the simple event-probability. Every insurance finance addresses the future with securities.
Till now, you might have got an idea of how the money which you're holding for upcoming transactions, have immense power to affect economies on a global level.

Ben Graham Ideology-

Ben Graham, a well-known investor figure talks about the ideology of calculated investments in his book 'The Intelligent Investor'. Prior calculations while investing the probability of returns.
Any game which includes probability is never a piece of cake but it does become tastier when you play it with calculated predictions. The idea of this website is to give you an idea about finance related prior calculations.
The idea of financial management is always projected to bring in more and more returns BUT for us, it's something more than that. We at BusinessXP believe that idea of any sort of management is to queue up the things in the best way possible- desired to extract profits but to being successful in countering the losses during the period of economy and finance crisis.
If you are a shareholder at some stock-exchange, you know well that for any public company, the growth curve is never constant. It's a game of probability and statistic predictions. Even the leader business of an industry face a negative stock curve during heavy BEAR markets but does that mean that the company waits for the BEAR market phase to get over; or do they work to extract profits at that point of time. The answer to both of them is a NO.

During the recession phase of any industry, the related businesses make a strategy to counter the losses. The work of their finance managers is to take steps to escape the losses and which indirectly means to conserve their revenue; hence an indirect profit for them. Business phases continue to come and go and an intelligent manager always tries to extract the maximum and counter the minimum in any of such phase. Hence BusinessXP believes in intelligent management than to always trying to hit profits.
All the assets and the liabilities which an institution hold into their balance sheet includes the total finance which the business as an entity hold. Assets are the active resources which a company holds without any external calculated debts while liabilities are owned by some external agency by a company. Inside a business, everything should be very well organized for the smooth flow of the money. So that an easy balance between the assets and the liabilities is maintained.

Bank's Impact-

Banks are an integral centric financial institute that validates, initiates and escapes the economy. It is both a regulator and fire-brigade for nation's finance. The priority of the banking structure is to stabilize the economy. The private finance is what a bank aims to collect by promising the investors to pay back the calculated interest. Banks circulates people's money for the development and lending purposes. The banking structure encourages the flow of the money. And this flowing money is always a healthy sign for any nation and its economy.
Any industry needs finance to develop itself. The magic law "Finance creates Finance" is the core ideology of any business of the universe.
In their initial days, business needs resources and machinery to operate for a production of the desired output. To get that, they move towards the banks. Loans, credits, lease are the first source of investments for many young businesses. And with these comes an important subject of managing those finances. So as to prevent future hurdles like bankruptcy and shut down.

Private Finance-

Private Finance is totally different and important aspect. For any legal channel, money comes from hard work and this hard earned money should be utilized in a most effective manner. Private finance, before going into investment seeks the promise from the corporate and the public sector institutes. This promise is a hope of the best income in return for the money invested.
To summarize: The money invested by private firms is used by the corporates and businesses. And the focus of all of them is to earn PROFITS.
Hence, in the world of Finance- everything is interconnected and nobody involved in this chain remains unaffected. From a small store in the center street to the highest profit making business of the world; everything is a unit of a large network of the financial structure, the structure that acts as the 'Driver of the economy'.