What Is Corporate Finance?

Corporate finance is the term used to describe the activities in an organisation like capital structure, budgeting, acquisition and investment, planning, funding taxation etc it can also be explain as the process of arranging finance advising on it and underwriting finance of organisations. In simple words it is nothing but the financial activities of a corporation. It is a specific area of finance and deals with the financial decisions taken in organisations.

The main purpose of finance is the enhancement of corporate value with minimum financial risks. It is also closely related to managerial finance. There are two types of discipline in corporate finance. They are short term and long term in nature. Short term decisions are called working capital management and long term decisions are known as capital investment decisions. Corporate finance has gained a lot of importance in the recent years and is an integral part of the planning and business strategy.

Corporate finance is basically processes by which companies raise capital, especially to fund growth, acquisitions etc; the division of an investment bank which advises on acquisitions, mergers, bid defences, restructures and disposals. in other words it is a function in a company which manages policy and strategy for (and the implementation of) capital structure, budgeting, acquisition and investment, financial modelling and planning, funding, dividends and taxation.