A corporate finance organization is that type of a financial institution, which provides financial services to big corporations or joint stock companies. Corporate finance organizations offer a comprehensive range of products and services to the corporate sector.
This type of organizations deals with the creation of venture capital funds, investment options, mergers and acquisitions, as well as managing the portfolio of a particular company’s stocks in the stock market. Corporate finance activities are multifarious in nature and they require the involvement of a large number of financial experts for carrying out all these operations.
Corporate finance can be defined as the process of creation of business schemes, implementation of corporate skills and the financial methods for acquiring, handling and utilizing capital assets in the most appropriate manner.
The different types of institutions and entities that offer corporate financial services include the following:
Venture capital organizations
Corporate finance professionals
Private investment firms
Corporate finance cannot be separated from globalization. Globalization has a significant role to play in the field of corporate finance. The business operations of a particular company can be extended beyond its own territory or domicile because of the scientific and industrial developments and the expansion of the travel and tourism market all over the world. Due to this global exposure, the businesses have started to prosper.
With the help of globalization, it has become possible to merge each and every market across the world. So the concept of separated and localized market has been eliminated. This has resulted in increased competition among the business enterprises. This has acted upon the corporate financial market to a significant degree and the number of corporate financing options has gone up abruptly. At the present time, the corporations have easy access to the financial assets of international investors at any point of time when there is a necessity. However, the knowledge regarding international corporate finance needs to be enhanced for getting the international financing options. To conclude, it can be acknowledged that corporate finance organizations are doing a lot of value addition to the corporate sector.
Last Updated on : 1st August 2013