What is corporate finance?

Finance
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#1

Corporate finance
Corporate finance refers to the financial activities related to running a corporation, usually with a division or department set up to oversee those financial activities.

One example of corporate finance: A large company may have to decide whether to raise additional funds through a bond issue or stock offering. Investment banks may advise the firm on such considerations and help it market the securities.

Startups may receive capital from angel investors or venture capitalists in exchange for a percentage of ownership. If a company thrives and decides to go public, it will issue shares on a stock exchange through an initial public offering (IPO) to raise cash.

In other cases, a company might be trying to budget its capital and decide which projects to finance and which to put on hold in order to grow the company. All these types of decisions fall under corporate finance.

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#2

Corporate finance is all about strategies and principles that corporations use to make their financing and investing decisions. Like Capital budgeting, cost of capital and managing liquidity(working capital management). It covers all the aspects of balance sheet.

And corporate managers are also concerned with the use of financial statements to evaluate performance as well as to develop and communicate future plans.