Finance is the study of how investors allocate their assets over time under conditions of certainty and uncertainty. A key point in finance, which affects decisions, is the time value of money, which states that a unit of currency today is worth more than a unit of currency tomorrow. Finance measures the risks vs. profits and gives an indication of whether the investment is good or not. Finance can be broken into three different sub categories: public finance, corporate finance and personal finance.

Areas of finance[link]

Personal finance[link]

Questions in personal finance revolve around

• How can people protect themselves against unforeseen personal events, as well as those in the external economy?
• How can family assets best be transferred across generations (bequests and inheritance)?
• How does tax policy (tax subsidies or penalties) affect personal financial decisions?
• How does credit affect an individual's financial standing?
• How can one plan for a secure financial future in an environment of economic instability?

Personal financial decisions may involve paying for education, financing durable goods such as real estate and cars, buying insurance, e.g. health and property insurance, investing and saving for retirement.

Personal financial decisions may also involve paying for a loan, or debt obligations. The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are:^[1]

1. Financial position: is concerned with understanding the personal resources available by examining net worth and household cash flow. Net worth is a person's balance sheet, calculated by adding up all assets under that person's control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the personal goals can be accomplished.
2. Adequate protection: the analysis of how to protect a household from unforeseen risks. These risks can be divided into liability, property, death, disability, health and long term care. Some of these risks may be self-insurable, while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance. Business owners, professionals, athletes and entertainers require specialized insurance professionals to adequately protect themselves. Since insurance also enjoys some tax benefits, utilizing insurance investment products may be a critical piece of the overall investment planning.
3. Tax planning: typically the income tax is the single largest expense in a household. Managing taxes is not a question of if you will pay taxes, but when and how much. Government gives many incentives in the form of tax deductions and credits, which can be used to reduce the lifetime tax burden. Most modern governments use a progressive tax. Typically, as one's income grows, a higher marginal rate of tax must be paid.^{[citation needed]} Understanding how to take advantage of the myriad tax breaks when planning one's personal finances can make a significant impact.
4. Investment and accumulation goals: planning how to accumulate enough money for large purchases, and life events is what most people consider to be financial planning. Major reasons to accumulate assets include, purchasing a house or car, starting a business, paying for education expenses, and saving for retirement.

   Achieving these goals requires projecting what they will cost, and when you need to withdraw funds. A major risk to the household in achieving their accumulation goal is the rate of price increases over time, or inflation. Using net present value calculators, the financial planner will suggest a combination of asset earmarking and regular savings to be invested in a variety of investments. In order to overcome the rate of inflation, the investment portfolio has to get a higher rate of return, which typically will subject the portfolio to a number of risks. Managing these portfolio risks is most often accomplished using asset allocation, which seeks to diversify investment risk and opportunity. This asset allocation will prescribe a percentage allocation to be invested in stocks, bonds, cash and alternative investments. The allocation should also take into consideration the personal risk profile of every investor, since risk attitudes vary from person to person.

5. Retirement planning is the process of understanding how much it costs to live at retirement, and coming up with a plan to distribute assets to meet any income shortfall. Methods for retirement plan include taking advantage of government allowed structures to manage tax liability including: individual (IRA) structures, or employer sponsored retirement plans.
6. Estate planning involves planning for the disposition of one's assets after death. Typically, there is a tax due to the state or federal government at your death. Avoiding these taxes means that more of your assets will be distributed to your heirs. You can leave your assets to family, friends or charitable groups.

Corporate finance[link]

Managerial or corporate finance is the task of providing the funds for a corporation's activities (for small business, this is referred to as SME finance). Corporate finance generally involves balancing risk and profitability, while attempting to maximize an entity's wealth and the value of its stock, and generically entails three interrelated decisions. In the first, "the investment decision", management must decide which "projects" (if any) to undertake. The discipline of capital budgeting is devoted to this question, and may employ standard business valuation techniques or even extend to real options valuation; see Financial modeling. The second, "the financing decision" relates to how these investments are to be funded: capital here is provided by shareholders, in the form of equity (privately or via an initial public offering), creditors, often in the form of bonds, and the firm's operations (cash flow). Short-term funding or working capital is mostly provided by banks extending a line of credit. The balance between these elements forms the company's capital structure. The third, "the dividend decision", requires management to determine whether any unappropriated profit is to be retained for future investment / operational requirements, or instead to be distributed to shareholders, and if so in what form. Short term financial management is often termed "working capital management", and relates to cash-, inventory- and debtors management. These areas often overlap with the firm's accounting function, however, financial accounting is more concerned with the reporting of historical financial information, while these financial decisions are directed toward the future of the firm.

Another business decision concerning finance is investment, or fund management. An investment is an acquisition of an asset in the hope that it will maintain or increase its value. In investment management – in choosing a portfolio – one has to decide what, how much and when to invest. To do this, a company must:

• Identify relevant objectives and constraints: institution or individual goals, time horizon, risk aversion and tax considerations;
• Identify the appropriate strategy: active versus passive hedging strategy
• Measure the portfolio performance

Financial management is duplicate with the financial function of the Accounting profession. However, financial accounting is more concerned with the reporting of historical financial information, while the financial decision is directed toward the future of the firm.

Financial risk management, an element of corporate finance, is the practice of creating and protecting economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk. (Other risk types include Foreign exchange, Shape, Volatility, Sector, Liquidity, Inflation risks, etc.) It focuses on when and how to hedge using financial instruments; in this sense it overlaps with financial engineering. Similar to general risk management, financial risk management requires identifying its sources, measuring it (see: Risk measure: Well known risk measures), and formulating plans to address these, and can be qualitative and quantitative. In the banking sector worldwide, the Basel Accords are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks.

Financial services[link]

An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise capital by borrowing or selling equity claims, decreasing its expenses, or increasing its income. The lender can find a borrower, a financial intermediary such as a bank, or buy notes or bonds in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary earns the difference for arranging the loan.

A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity.

Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance) and by a wide variety of other organizations, including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments and methodologies, with consideration to their institutional setting.

Finance is one of the most important aspects of business management and includes decisions related to the use and acquisition of funds for the enterprise.

In corporate finance, a company's capital structure is the total mix of financing methods it uses to raise funds. One method is debt financing, which includes bank loans and bond sales. Another method is equity financing - the sale of stock by a company to investors, the original shareholders of a share. Ownership of a share gives the shareholder certain contractual rights and powers, which typically include the right to receive declared dividends and to vote the proxy on important matters (e.g., board elections). The owners of both bonds and stock, may be institutional investors - financial institutions such as investment banks and pension funds — or private individuals, called private investors or retail investors.

Public finance[link]

Public finance describes finance as related to sovereign states and sub-national entities (states/provinces, counties, municipalities, etc.) and related public entities (e.g. school districts) or agencies. It is concerned with:

• Identification of required expenditure of a public sector entity
• Source(s) of that entity's revenue
• The budgeting process
• Debt issuance (municipal bonds) for public works projects

Central banks, such as the Federal Reserve System banks in the United States and Bank of England in the United Kingdom, are strong players in public finance, acting as lenders of last resort as well as strong influences on monetary and credit conditions in the economy.^[2]

Capital[link]

Capital, in the financial sense, is the money that gives the business the power to buy goods to be used in the production of other goods or the offering of a service. (The capital has two types of resources Equity and Debt)

The deployment of capital is decided by the budget. This may include the objective of business, targets set, and results in financial terms, e.g., the target set for sale, resulting cost, growth, required investment to achieve the planned sales, and financing source for the investment.

A budget may be long term or short term. Long term budgets have a time horizon of 5–10 years giving a vision to the company; short term is an annual budget which is drawn to control and operate in that particular year.

Budgets will include proposed fixed asset requirements and how these expenditures will be financed. Capital budgets are often adjusted annually and should be part of a longer-term Capital Improvements Plan.

A cash budget is also required. The working capital requirements of a business are monitored at all times to ensure that there are sufficient funds available to meet short-term expenses.

The cash budget is basically a detailed plan that shows all expected sources and uses of cash. The cash budget has the following six main sections:

1. Beginning Cash Balance - contains the last period's closing cash balance.
2. Cash collections - includes all expected cash receipts (all sources of cash for the period considered, mainly sales)
3. Cash disbursements - lists all planned cash outflows for the period, excluding interest payments on short-term loans, which appear in the financing section. All expenses that do not affect cash flow are excluded from this list (e.g. depreciation, amortization, etc.)
4. Cash excess or deficiency - a function of the cash needs and cash available. Cash needs are determined by the total cash disbursements plus the minimum cash balance required by company policy. If total cash available is less than cash needs, a deficiency exists.
5. Financing - discloses the planned borrowings and repayments, including interest.
6. Ending Cash balance - simply reveals the planned ending cash balance.

Financial theory[link]

Financial economics[link]

Financial economics is the branch of economics studying the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy. Financial economics concentrates on influences of real economic variables on financial ones, in contrast to pure finance. It centres on decision making under uncertainty in the context of the financial markets, and the resultant economic and financial models. It essentially explores how rational investors would apply decision theory to the problem of investment. Here, the twin assumptions of rationality and market efficiency lead to modern portfolio theory (the CAPM), and to the Black Scholes theory for option valuation; it further studies phenomena and models where these assumptions do not hold, or are extended. "Financial economics", at least formally, also considers investment under "certainty" (Fisher separation theorem, "theory of investment value", Modigliani-Miller theorem) and hence also contributes to corporate finance theory. Financial Econometrics is the branch of Financial Economics that uses econometric techniques to parameterize the relationships suggested.

Although closely related, the disciplines of economics and finance are distinctive. The “economy” is a social institution that organizes a society’s production, distribution, and consumption of goods and services,” all of which must be financed.

Economists make a number of abstract assumptions for purposes of their analyses and predictions. They generally regard financial markets that function for the financial system as an efficient mechanism. Instead, financial markets are subject to human error and emotion.^[3] New research discloses the mischaracterization of investment safety and measures of financial products and markets so complex that their effects, especially under conditions of uncertainty, are impossible to predict. The study of finance is subsumed under economics as financial economics, but the scope, speed, power relations and practices of the financial system can uplift or cripple whole economies and the well-being of households, businesses and governing bodies within them—sometimes in a single day.

Financial mathematics[link]

Financial mathematics is a field of applied mathematics, concerned with financial markets. The subject has a close relationship with the discipline of financial economics, which is concerned with much of the underlying theory. Generally, mathematical finance will derive, and extend, the mathematical or numerical models suggested by financial economics. In terms of practice, mathematical finance also overlaps heavily with the field of computational finance (also known as financial engineering). Arguably, these are largely synonymous, although the latter focuses on application, while the former focuses on modeling and derivation (see: Quantitative analyst). The field is largely focused on the modelling of derivatives, although other important subfields include insurance mathematics and quantitative portfolio problems. See Outline of finance: Mathematical tools; Outline of finance: Derivatives pricing.

Experimental finance[link]

Experimental finance aims to establish different market settings and environments to observe experimentally and provide a lens through which science can analyze agents' behavior and the resulting characteristics of trading flows, information diffusion and aggregation, price setting mechanisms, and returns processes. Researchers in experimental finance can study to what extent existing financial economics theory makes valid predictions, and attempt to discover new principles on which such theory can be extended. Research may proceed by conducting trading simulations or by establishing and studying the behaviour of people in artificial competitive market-like settings.

Behavioral finance[link]

Behavioral Finance studies how the psychology of investors or managers affects financial decisions and markets. Behavioral finance has grown over the last few decades to become central to finance.

Behavioral finance includes such topics as:

1. Empirical studies that demonstrate significant deviations from classical theories.
2. Models of how psychology affects trading and prices
3. Forecasting based on these methods.
4. Studies of experimental asset markets and use of models to forecast experiments.

A strand of behavioral finance has been dubbed Quantitative Behavioral Finance, which uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation. Some of this endeavor has been led by Gunduz Caginalp (Professor of Mathematics and Editor of Journal of Behavioral Finance during 2001-2004) and collaborators including Vernon Smith (2002 Nobel Laureate in Economics), David Porter, Don Balenovich, Vladimira Ilieva, Ahmet Duran). Studies by Jeff Madura, Ray Sturm and others have demonstrated significant behavioral effects in stocks and exchange traded funds. Among other topics, quantitative behavioral finance studies behavioral effects together with the non-classical assumption of the finiteness of assets.

Intangible asset finance[link]

Intangible asset finance is the area of finance that deals with intangible assets such as patents, trademarks, goodwill, reputation, etc.

Professional qualifications[link]

There are several related professional qualifications, that can lead to the field:

• Generalist Finance qualifications:
  • Degrees: Masters degree in Finance (MSF), Master of Financial Economics, Master of Finance & Control (MFC), Master Financial Manager (MFM), Master of Financial Administration (MFA)
  • Certifications: Chartered Financial Analyst (CFA), Certified Treasury Professional (CTP), Certified Valuation Analyst (CVA), Certified International Investment Analyst (CIIA), Financial Risk Manager (FRM), Association of Corporate Treasurers (ACT), Certified Market Analyst (CMA/FAD) Dual Designation, Corporate Finance Qualification (CF), Chartered Alternative Investment Analyst (CAIA)
• Quantitative Finance qualifications: Master of Financial Engineering (MSFE), Master of Quantitative Finance (MQF), Master of Computational Finance (MCF), Master of Financial Mathematics (MFM), Certificate in Quantitative Finance (CQF).
• Accountancy qualifications:
  • Qualified accountant: Chartered Accountant (ACA - UK certification / CA - certification in Commonwealth countries), Chartered Certified Accountant (ACCA, UK certification), Certified Public Accountant (CPA, US certification), ACMA/FCMA ( Associate/Fellow Chartered Management Accountant) from Chartered Institute of Management Accountant(CIMA), UK.
  • Non-statutory qualifications: Chartered Cost Accountant CCA Designation from AAFM
• Business qualifications: Master of Business Administration (MBA), Master of Management (MM), Master of Commerce (M.Comm), Master of Science in Management (MSM), Doctor of Business Administration (DBA)

See also[link]

• Outline of finance
• Financial crisis of 2007–2010

	Book: Finance
Wikipedia books are collections of articles that can be downloaded or ordered in print.

References[link]

External links[link]

Look up finance in Wiktionary, the free dictionary.

Wikiversity has learning materials about Finance

Wikisource has the text of the 1921 Collier's Encyclopedia article Finance.

• OECD work on financial markets Observation of UK Finance Market
• Wharton Finance Knowledge Project - aimed to offer free access to finance knowledge for students, teachers, and self-learners.
• Professor Aswath Damodaran (New York University Stern School of Business) - provides resources covering three areas in finance: corporate finance, valuation and investment management and syndicate finance.

Michael Maloney
Maloney at the 2011 Minghella Film Festival
Born	(1957-06-19) 19 June 1957 (age 55) Bury St. Edmunds, Suffolk, England, United Kingdom
Occupation	Actor
Years active	1979–present

Michael Maloney (born 19 June 1957) is an English actor.

Life and career[link]

Born in Bury St. Edmunds, Suffolk, Maloney's first television appearance was as Peter Barkworth's teenage son in the 1979 drama series, Telford's Change.

After several dry years in his career, Maloney went on to star in many films and television series, as well as developing a stage career and became a familiar face after playing a major role in Kenneth Branagh's 1989 film adaptation of Henry V. In the early 1990s, he starred on television in Mr Wakefield's Crusade, and on film as Mark in Truly, Madly, Deeply, and in 1994 he took the lead in the BBC adaptation of Love on a Branch Line. He appeared in both the 1990 and 1996 film versions of Hamlet, as Rosencrantz and Laertes respectively, and in several other Shakespeare screen adaptations. Amid several TV appearances, he starred as Jason Fields in the film American Reel in 1999. He also played Cassius in the 2005 miniseries Empire, John Major in 2009's Margaret and Prime Minister Sir Robert Peel in the 2009 film "The Young Victoria".

He is also active in radio drama on BBC Radio 4, playing the Dean in both series of High Table, Lower Orders and Giles the gossip columnist in His Master's Voice. He has also made a guest appearance in the BBC Radio 4 series Baldi. He has also appeared in a Bollywood film, I See You, playing a policeman.

In 2010 he appeared in long running drama Casualty as consultant Howard Fairfax.

Selected filmography[link]

• Richard's Things (1980) - Bill
• Henry V (1989) - Louis the Dauphin
• Truly, Madly, Deeply (1990) - Mark
• Hamlet (1990) - Rosencrantz
• A Midwinter's Tale (1995) - Joe Harper (Hamlet)
• Othello (1995) - Roderigo
• Hamlet (1996) - Laertes

Radio[link]

• Scenes of Seduction, radio play written by Timberlake Wertenbaker and directed by Ned Chaillet, broadcast on BBC Radio 4 7 Mar 2005 – Henry (King Henry V).^[1]

References[link]

External links[link]

• Michael Maloney at the Internet Movie Database

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2007)

The Crisis

First Issue of The Crisis: A Record of the Darker Races, November 1910. New York: NAACP, 1910
Editor	W.E.B. Du Bois
Staff writers	Oswald Garrison Villard, J. Max Barber, Charles Edward Russell, Kelly Miller, W.S. Braithwaite, M. D. Maclean
Monthly[1]
Publisher	NAACP
First issue	November 1910 (1910-November)
Company	The Crisis Publishing Company
Country	United States
Based in	New York, NY
Language	English
Website	www.thecrisismagazine.com
ISSN	1559-1573

The Crisis is the official magazine of the National Association for the Advancement of Colored People (NAACP), and was founded in 1910 by W. E. B. Du Bois (editor), Oswald Garrison Villard, J. Max Barber, Charles Edward Russell, Kelly Miller, W.S. Braithwaite, M. D. Maclean.^[2]

The original title of the journal was The Crisis: A Record of The Darker Races. From 1997 to 2003, it appeared as The New Crisis: The Magazine of Opportunities and Ideas, but the title has since reverted to The Crisis. The title derives from the poem "The Present Crisis" by James Russell Lowell.^[1] Published monthly, by 1920 its circulation had reached 100,000 copies. Du Bois proclaimed his intentions in his first editorial:

The object of this publication is to set forth those facts and arguments which show the danger of race prejudice, particularly as manifested today toward colored people. It takes its name from the fact that the editors believe that this is a critical time in the history of the advancement of men. …Finally, its editorial page will stand for the rights of men, irrespective of color or race, for the highest ideals of American democracy, and for reasonable but earnest and persistent attempts to gain these rights and realize these ideals.^[3]

Predominantly a current-affairs journal, The Crisis also included poems, reviews, and essays on culture and history. Du Bois' initial position as editor was in line with the NAACP's liberal programme of social reform and racial equality, but by the 1930s Du Bois was advocating a form of black separatism. This led to disputes between Du Bois and the NAACP resulting in his resignation as editor in 1934. He was replaced by Roy Wilkins.

Although The Crisis was officially an organ of the NAACP, Du Bois had a large degree of control over the periodicals expressed opinion. Du Bois wrote in Dusk of Dawn that he intended for The Crisis to represent his personal opinions:

I determine to make the opinion of the Crisis a personal opinion; because, as I argued, no organization can express definite and clear cut opinions… the Crisis would state openly the opinion of its editor, so long, of course, as that opinion was in general agreement with that of the organization.

Du Bois contends that the periodical suffered during the Great Depression as the "circulation dropped steadily until by 1933 it was scarcely more than ten thousand paid subscriptions." Du Bois left the magazine for both financial and ideological reasons.

Throughout the Du Bois years The Crisis published the work of many young African American writers associated with the Harlem Renaissance. Its greatest era as a literary journal was between 1919 and 1926, when Jessie Redmon Fauset was literary editor. Fauset encouraged such writers as Arna Bontemps, Langston Hughes, Countee Cullen and Jean Toomer.

Following the departure of Fauset and Du Bois, the influence of The Crisis declined. The magazine was unable to sustain the high literary standards it had achieved under Fauset, but it continued to have a powerful political voice.

References[link]

A 1911 copy of The Crisis depicting "Ra-Maat-Neb, one of the black kings of the Upper Nile", a copy of the relief of Nebmaatre I on Meroe pyramid 17.

Du Bois, WEB (1940), Dusk of Dawn, Library of America, ISBN [[Special:BookSources/97809400450332|97809400450332]] .

Partington, Paul, The Moon Illustrated Weekly: Black America's First Weekly Magazine, ISBN 978-0-9602538-2-1 .

External links[link]

• The Crisis, http://www.thecrisismagazine.com/ .
• History, NAACP, http://www.naacp.org/about/history/ .
• The Crisis, Footnote, January 1918, http://www.footnote.com/browsemore/179488128_Boom%20and%20Bust:%201920-1935/ .
• The Crisis, Books, Google, http://www.google.com/search?tbs=bks%3A1&tbo=1&q=The+Crisis+Magazine&btnG=Search+Books#q=The+Crisis+Magazine&hl=en&tbo=1&tbs=bks:1,bkt:m&source=lnt&sa=X&ei=TrrMTILMLJG4sQPMn9CPDg&ved=0CBMQpwU&fp=fd2e97bdff999388 .
• The Crisis, 1, 10–23, The Modernist Journals Project, Nov. 1910 – Apr. 1911, May 1915 – Apr. 1922, http://www.modjourn.org/render.php?view=mjp_object&id=crisiscollection .