- Finance organization means an organization, financial institution or company, which is involved in offering financial services to its customers. The finance institutions are regulated and governed by the rules and regulations formulated by government authorities. The finance companies take under its purview the following:
Non Banking Financial Institutions
Asset Management Firms
Stock Brokerage Firms
The organizations of finance also perform the function of acting as mediators in debt security markets and stock markets. The functions of finance organization include mainly the collection of funds from investors and then distributing the same among financial institutions looking for such funds. The financial companies undertake activities related with stocks, bonds, risk diversification, borrowings, budgeting, insurance, investing, hedging, portfolio management and many other related activities.
The financial companies, through their activities, channelize the money in different layers of the economy and therefore play a crucial role in influencing the domestic as well as global economic scenario. In their business, they make use of various economic models. They guide their client investors to earn maximum profits from their investments. They also carry out various educational programs on the basics and nuances of investment and also on valuation of assets, bonds, stocks, currencies and commodities.
Some important types of finance organizations are as follows:
Mortgage finance company
Car finance company
Personal finance company
Personal loan finance company
Home finance company
Corporate finance company
Business Finance company
A financial organization is thus an institution, which collects funds, either from the public or from other institutions and invests them in financial assets. These finance organizations can be both private and public. As a result of globalization, the finance organizations are not only restricted within the national borders. With their diverse range of financial service, the financial organizations are becoming increasingly popular in the overseas markets.
For further information, please refer to the following links:
- Business Finance Organization
- Finance Global Organization
- Personal Finance Organization
- Corporate Finance Organization
- Home Finance Organization
Last Updated on : 1st August 2013