Rights issues

A rights issue provides a way of raising new share capital by means of an offer to existing shareholders, inviting them to subscribe cash for new shares in proportion to their existing holdings.

Temporary Working Capital vs Permanent Working Capital

working capital
Temporary working capital (TWC) is the temporary fluctuation of net working capital over and above the permanent working capital.

Sources of Funds

sources of funds
Sourcing finance may be done for a variety of reasons. Traditional areas of need may be for capital asset acquirement - new machinery or the construction of a new building or depot. The development of new products can be enormously costly and here again capital may be required. Normally, such developments are financed internally, whereas capital for the acquisition of machinery may come from external sources.

Financial Management

Financial management is concerned with the maintenance and creation of economic value or wealth/responsibilities and activities of financial managers.