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finance
1. INTRODUCTION
Overview of the financial system
A financial system refers to the mechanism that involves financial markets, financial institutions, laws, regulations and techniques through which financial resources are mobilized from those who have surplus to those in deficit an economy. The primary task of any financial system therefore is to facilitate the movement of funds from those who save to those who borrow to buy needed goods and services or for investments. The financial system determines both the cost of funds (capital) and how much funds will be available to finance consumption and investments.
The agents of the financial system that facilitate the movement of the funds from savers to borrowers are the financial institutions. The financial institutions include commercial banks, insurance companies, investment banks, finance companies and mutual funds, as well as regulators such as Central Banks, Securities and Exchange Commission, and the Stock Exchange. They collectively play the role of financial intermediaries in an economy, by mobilizing funds by means of developed instruments or products from those who have surplus to those who have shortage of funds. A well functioning financial system is therefore crucial to the economic health of a country.

What is Finance? Finance is a branch of economics concerned with how individuals, businesses and governments source funds to finance their consumption and investments decisions. For example, an individual can source funds from a bank to buy a car. A business organisation can raise money by issuing securities (bonds or shares) to finance the expansion of operations. Governments can issue bonds to raise money to finance infrastructural projects.
The focus of this course however is on how business organisations source funds to finance their operational and investment decisions.

The four basic areas of Finance
Finance is commonly partitioned into four segments namely:
Corporate Finance

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