Finance career essay

Finance CareerIntroductionFinance is all about how monetary resources are allocated and raised.

This is usually done by organizations, businesses and individuals. In doing all these there are usually risks involved. In the financial career people study about monetary resources and other assets that exist in business set ups. The students learn how these assets can be controlled. They are taught the management of these important resources. For instance how the risks can be avoided and in case they occur how they can be managed. The students are also taught about profiling. The financial career includes how business organizations can be funded.

This knowledge is normally applied in the management of financial affairs in an organization. A financial manager therefore analyzes the differences between the expenditures and the income in an organization. [1]History of financeSince long time ago, many people thought the very fact they could make money meant that they could be good financial managers. Research shows that many such people made very big mistakes in their financial decisions.  This always led to bankruptcy in the business organizations. In the 1906s economists had some knowledge in resource allocation. They knew how taking risks was of importance. In the early years economists regarded as markets as casinos.

Expectations of capital gains determined the asset prices. Large amounts of money were used on activities that were quite speculative. This means that goods were purchased and the resold later. This assisted the economists in price stabilization.

In the year 1938, the intrinsic value of an asset was reflected by the asset price. The private bank notes resembled the bank checks that are used in the world today. These notes were even honored by other banks.

The bank notes were also used to trade or to buy other items. In other words the bank notes became a medium of exchange. Research shows that the local people had had faith in the banks or the brokerage houses. Before the war the barter trade system was used. After some time money was introduced.

Banks started giving out paper money. The paper money however had no intrinsic value. The places of issue used to redeem the paper money with hard money. The bank note was only used locally. This is because its distribution was quite limited.

Forms of insurance, securities, and markets of commodity were started by Athenians and Phoenicians. [2]FinanceWhen an organization’s income is more than the expenditure, this is usually a positive indicator. Such organizations can always invest the excess money or lend out to other organizations. When an organization’s expenditure exceeds its income, then this is a negative indicator.

Such business bodies can raise money by minimizing their expenses, borrowing or selling its claims of equity. In this lending and borrowing, a financial intermediary is normally useful. The lending organization normally benefits but it is not the exact interest that the borrower pays. The borrower pays a higher amount and the difference between the two is taken by the financial intermediary. Many people usually use banks as the financial intermediaries. Banks normally take up the challenge of facilitating the transactions between the borrower and the lender. The banks receive money from the lenders as deposits and then give out or lend the cash to the borrowers.

So the money that flows in space is compensated by banks. Corporate financeThis is where companies sell their stock to institutions of investment. Such institutions are banks which then sell these stocks to the general public or to anyone who wants to buy them. The person who buys the stock is usually given some part ownership in the institution that sold the stock. The money that is ploughed by business organizations from the sell of the stock is mostly used to expand its activities. Types of financeThere are different types of finance that exist in today’s world. Personal finance is the one that is used by individuals in management of their finances. Public finance involves the financial measures that are carried out by the government.

On the other hand, the one that is carried out in business organizations is called corporate finance. All this is usually done to meet the institutions set objectives. For any organization that is starting up, the managers have to carry out very good planning to succeed financially. This helps the business organizations to have a future that is very secure. [3]Business financeFunds are usually provided by companies to help in the support of the activities carried out in corporations. The money can be accessed in bonds form.

This is what constitutes the capital structure in business organizations. Business organizations can access their working capital from banks. When business organizations invest there is always the hope that the value of the investments will increase with time. This is what is called management investment. It is never an easy task for businesses to invest. It is normally a hard task for newly starting business organizations to invest. The top management usually has to agree on the amount of money or other assets to be invested.

It is not just money that is usually invested by organizations. The managers have to decide what can be invested at what time. Accounting is mostly carried out in financial management. It is good for organizations to make decisions that will benefit it even in the future. There are also instances when financial information that happened in the past is reported. This is termed as financial accounting in a business organization. Financial economicsIn the financial career, students can choose to specialize in financial economics. This is just a section of economics.

It is concerned with rates of interests that are charged by lending institutions, price and shares. The study finds out how these variables are related. In this students are taught how to compare the prices of assets in the market. This is called relative valuation.

The value of the assets is determined by evaluating how much cash the asset can give. This is termed as discounting in financial terms. The derivatives of the assets are then determined. [4]Experimental financeIn experimental finance, the environments are analyzed.

This is to determine how the agents behave. The trading flows are also analyzed such that their characteristics are known. People’s behavior in the market is really analyzed. Personal financeIn the financial career, students are also taught about personal finance. Issues dealing with personal finance include how a person will source the money to meet his or her needs. For example, a person can borrow from friends or use the money that he or she has saved.

How can a person transfer his property to his children? Issues dealing with inheritance are discussed in this. For individuals who are employed they need to pay tax. A person needs to evaluate how the tax will affect his decision making in financial matters. It involves how much money is needed by a person to enable him or her to meet the needs at hand.

These needs may include paying school fees. [5]Potential of finance careerThe finance career is very marketable in the world today. After studying this career, students can be employed in banks, insurance companies and even in government agencies.

There are very many organizations that usually require financial managers. This includes churches. Churches are usually not well paying. Many insurance companies need financial managers and they are well paying. Most of the citizens in America are insured so this is a lucrative business. This is especially for those living above the poverty line. Opportunities in the finance career are not so many compared to banking profession.

Finance managers can also be employed in the hospitality industry. Requirements in financial careerFinancial career is very good and any person wishing to pursue it should be encouraged. Such a person should have vision in this sector. The general requirements are that the person should be a go-getter.

This instinct is important as it affects how the person will deal with challenges in this profession. Any student who desires to pursue this career needs to have a love for numbers.  If you are not a fun of figures then this is not just your area. The person needs to have passed his or her GCSE math’s grade. They should not be people who seek glamour. Finance schoolThere are very many good schools of finance in the United States. May of them offer courses in business administration courses.

The department of finance is mostly under the school of business. An example of a good finance school is Mays business school. This school is at Texas A and M University. This is a business school and it has a finance department too. It is highly known for offering quality education.

In fact many managers easily recruit the graduates from Mays school of business because they know the students are well taught. (Broederlijk, 2000)The lecturers ensure that they finish the syllabus in time. The students are given ample time to read and revise their work. In fact the finance department is really known for offering very good and marketable programs. The courses taught in this department include; business finance, financial economics, experimental finance and corporate finance. Mays school of finance is still on very high demand.

The school receives very many applications. The school has got approximately one thousand eight hundred students that are studying the finance option. (May, 1999)ConclusionIn the historic days, people carried out financing but using crude methods. They carried out controlling of assets. There was also the management of risks. Initially banks used paper money as a medium of exchange. A financial career is very good and quite important in the twenty first century. It is very marketable especially in insurance companies.

People wishing to study this course should be good at figures. The finance subject involves courses like corporate finance. This is where companies sell their stock to investment institutions. Business finance includes how businesses can access their working capital from banks. Personal finance is important to every person. This is simply individual management of his or her finances.  Many colleges should encourage the students to study finance as a subject. ReferencesBrignall, S.

, Carter, C. and Crowther, D. (2001): The Accounting Profession in the NewMillennium: – A Profession in Crisis: Discussion Papers in Management and OrganizationStudies, No. 01/02; University Of Leicester Management CentreBroederlijk, D. (2000): A Tax on Financial Speculation Background Paper; Bart Bode; BrusselsGary, M.

(1987):  Money in the Trans-Mississippi: Explorations in Economic History 24: 218-43Herman, E. (1969): Documentary History of Banking and Currency in the United States: ChelseaHouse Publications, New YorkMay, M. (1999): Transforming the finance function to add company wide value: FinancialTimes, Prentice Hall: London[1] Gary M. (1987):  ‘ Money in the Trans-Mississippi.’ Explorations in Economic History 24: 218-43[2]Gary M.

(1987):  ‘ Money in the Trans-Mississippi.’ Explorations in Economic History 24: 218-43[3] May, M. (1999): Transforming the finance function to add company wide value, London; Financial Times, Prentice Hall[4] May, M. (1999): Transforming the finance function to add company wide value, London; Financial Times, Prentice Hall[5] Herman, E.

(1969): Documentary History of Banking and Currency in the United States; New York; Chelsea House Publications