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Practice Discipline

Finance

Also Known As Business Finance

The practice discipline concerned with the management, movement and raising of money, encompassing capital budgeting, dividend policy and capital structure decisions that managers make to build firm value for shareholders. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/

Facts
Disputed
Discipline Scope
Capital budgeting, dividend policy and capital structure, overlapping with investment banking and securities trading where firms raise capital through bonds and equity. 1
Where finance ends and adjacent practices begin is contested: capital budgeting and capital structure are core, but investment banking and securities trading are sometimes treated as finance's own territory and sometimes as separate practices finance merely overlaps.
Discipline Scope
Based on the scope of financial activities, the discipline can be divided into the three primary branches personal, corporate, and public finance. 1
Discipline Scope
The first stock exchange was opened in Antwerp in 1531. 1
Finance
Filter Results3 entries
FAQs

What are the three main branches of finance?

Personal finance, corporate finance and public finance.

Finance is usually divided into personal finance (budgeting, insurance, education, retirement planning), corporate finance (capital structure, dividend policy, capital budgeting decisions) and public finance (government spending, revenue sources and sovereign debt).
Connections

Associated With

401(k), Products and Services

A 401(k) is a United States employer-sponsored retirement savings plan, a core personal-finance and retirement-planning product studied within finance practice.

The Alibaba September 2014 initial public offering, then the largest in history at 25 billion dollars, is a finance-practice case study in cross-border listing structure and IPO valuation.

Source Wikipedia, Alibaba Group IPO

Amazon's initial public offering on May 15, 1997, priced at 18 dollars per share on the Nasdaq, financed the company's early growth as an online retailer.

Source Wikipedia, History of Amazon

The Amazon 2017 all-cash acquisition of Whole Foods Market is a finance-practice case study in cash-financed acquisition and rapid deal valuation.

Source Wikipedia, Whole Foods Market

The Anheuser-Busch InBev 2016 acquisition of SABMiller, financed by one of the largest corporate debt issuances in history, is a finance-practice case study in mega-deal debt financing.

Source Wikipedia, AB InBev Acquisition of SABMiller

The 2000 merger of AOL and Time Warner, announced as broadband technology expanded across the United States, is widely regarded in finance as one of the worst corporate mergers in history once the combined company's value collapsed.

Source Wikipedia, AOL Time Warner

Apple's December 1980 initial public offering raised more than 100 million dollars, at the time the largest IPO since Ford Motor Company's 1956 offering.

Source Wikipedia, Apple Inc.

The AT&T 2018 acquisition of Time Warner, financed largely through debt, is a finance-practice case study in vertical-merger financing and leverage.

Source Wikipedia, AT&T Inc. Acquisition of Time Warner

The balanced scorecard's own defining feature is presenting financial measures alongside non-financial ones in one report, extending rather than replacing the purely financial performance measures finance practice traditionally relied on.

Source Wikipedia, Balanced Scorecard

One of the largest commercial banks in the United States, a major participant in consumer banking, lending and investment finance.

Banking Industry, Industries

Banking is a core institutional setting in which finance is practiced, from commercial lending to capital markets.

Lehman's 2008 collapse, driven by excessive leverage and a failed capital structure, is finance practice's leading case study in capital structure risk and helped precipitate the global financial crisis.

Source Wikipedia, Bankruptcy of Lehman Brothers

The Bayer 2018 acquisition of Monsanto, financed with a large debt-funded cash offer, is a finance-practice case study in cross-border acquisition financing and post-merger liability risk.

Source Wikipedia, Bayer Acquisition of Monsanto

Bear Stearns' near collapse in March 2008, resolved by a Federal Reserve backed sale to JPMorgan Chase, was the first major investment bank casualty of the 2008 financial crisis.

Source Wikipedia, Bear Stearns

Benjamin Graham is widely regarded as the father of value investing, establishing it as a finance practice discipline through Security Analysis (1934) and The Intelligent Investor (1949).

Source Wikipedia, Benjamin Graham

Warren Buffett's investment holding company, widely studied in finance for its value-investing approach to capital allocation.

Madoff ran the largest known Ponzi scheme in history through his own asset management business, making his case a standard reference in finance practice on investment fraud and the failure of due diligence.

Source Bernie Madoff - Wikipedia

Bernie Madoff's Ponzi scheme, uncovered in 2008, defrauded investors of tens of billions of dollars and remains the largest investment fraud ever committed by an individual.

Source Wikipedia, Madoff Investment Scandal

The world's largest asset manager, central to institutional and retail investment-management practice within finance.

The Blockbuster 2010 bankruptcy filing, unable to service its debt once streaming displaced video rental, is a finance-practice case study in capital structure under disruptive competition.

Source Wikipedia, Blockbuster LLC
Cash App, Products and Services

Cash App is a peer-to-peer payment and personal-finance app, part of the fintech expansion of consumer finance practice.

Chase Sapphire Reserve is a premium consumer credit card, a finance-practice product in consumer credit and rewards banking.

The Chrysler 2009 Chapter 11 filing, resolved through a government-backed sale of its core assets to a new entity, is a finance-practice case study in expedited bankruptcy sales.

Source Wikipedia, Chrysler

The Circuit City 2008 bankruptcy filing and 2009 liquidation is a finance-practice case study in retail insolvency and asset liquidation.

Source Wikipedia, Circuit City
Citigroup, Companies and Brands

A major global banking and financial services company operating across consumer banking, investment banking and wealth management.

Coinbase, Products and Services

Coinbase is a cryptocurrency exchange, a finance-practice venue for digital-asset trading and custody.

The 1998 Daimler-Benz and Chrysler merger, structured and later unwound as a case study in cross-border valuation and cultural integration failure, is a standard finance-practice example of merger due diligence.

Source Wikipedia, DaimlerChrysler
Debt Collection Industry, Industries

The debt-collection industry recovers unpaid consumer and commercial debt, a specialized function within the credit and lending cycle that finance practice governs.

Deutsche Bank paid a record 2.5 billion dollar fine in 2015 for its role in manipulating the Libor benchmark interest rate, one of the largest penalties in the wider Libor manipulation scandal.

Source Wikipedia, Libor Scandal
Discover Card, Products and Services

Discover Card is a payment-card network and card issuer operating in consumer credit and finance practice.

The Disney 2006 all-stock acquisition of Pixar is a finance-practice case study in stock-for-stock deal valuation and founder equity conversion.

Source Wikipedia, Pixar

The Eastman Kodak 2012 Chapter 11 filing, after digital photography displaced its film business, is a finance-practice case study in capital structure collapse and asset liquidation.

Source Wikipedia, Eastman Kodak Bankruptcy
Exxon-Mobil Merger, Corporate Events

Exxon and Mobil's 1999 merger, closing on November 30, 1999 to form ExxonMobil, remains one of the largest corporate mergers in history.

Source Wikipedia, ExxonMobil

The Facebook May 2012 initial public offering, hampered by Nasdaq technical failures and a swiftly revised valuation, is a finance-practice case study in high-profile IPO execution risk.

Source Wikipedia, Facebook Initial Public Offering

The Facebook 2014 acquisition of WhatsApp, structured as a mix of cash and stock reaching roughly 19 billion dollars, is a finance-practice case study in high-multiple technology acquisition valuation.

Source Wikipedia, WhatsApp

Financial services are, by the industry's own definition, economic services tied to finance and delivered by financial institutions; finance practice is the discipline the whole industry is organized around.

Source Wikipedia, Financial Services

Ford's 1956 initial public offering, one of the largest of its era, is a standard finance-practice case study in capital structure and dual-class share design.

Source Wikipedia, Ford Motor Company

Showing 1 to 50 of 104 in Associated With, page 1 of 3.

Topic Addressed By

Sources
1. Wikipedia, Finance
Wikipedia
  • lead section, opening definition
    Finance refers to the management, movement, and raising of money, with the related concepts of business finance, investments, and financial markets and institutions.
  • lead section, branches
    Based on the scope of financial activities, the discipline can be divided into the three primary branches personal, corporate, and public finance.
  • History of finance section
    The first stock exchange was opened in Antwerp in 1531.
View the Source
Wikipedia, Efficient-Market Hypothesis
Wikipedia
  • Theoretical background section
    If the price of the stock does not already reflect that information, then investors can trade on it, thereby moving the price until the information is no longer useful for trading.
  • Behavioral psychology section
    Behavioral economists attribute the imperfections in financial markets to a combination of cognitive biases such as overconfidence, overreaction, representative bias.
View the Source
Wikipedia, Bankruptcy of Lehman Brothers
WikipediaAssociated With: Bankruptcy of Lehman Brothers, Lead section
Quote, Associated With: Bankruptcy of Lehman Brothers, Lead section
These discussions failed, and Lehman filed a Chapter 11 petition that remains the largest bankruptcy filing in U.S. history, involving more than US$600 billion in assets.
View the Source
Wikipedia, J.P. Morgan
WikipediaAssociated With: J.P. Morgan, lead section
Quote, Associated With: J.P. Morgan, lead section
he was the driving force behind a wave of industrial consolidations in the United States at the turn of the twentieth century.
View the Source
Wikipedia, Warren Buffett
WikipediaAssociated With: Warren Buffett, Lead section
Quote, Associated With: Warren Buffett, Lead section
Warren Edward Buffett ( BUFF-it; born August 30, 1930) is an American investor and philanthropist who is the chairman emeritus and former CEO of the conglomerate Berkshire Hathaway.
View the Source
Wikipedia, Ford Motor Company
WikipediaAssociated With: Ford Motor Company IPO, introduction
Quote, Associated With: Ford Motor Company IPO, introduction
The company went public in 1956 but the Ford family, through special Class B shares, retain 40 percent of the voting rights.
View the Source
Wikipedia, Financial Services
WikipediaAssociated With: Financial Services Industry, lead section, opening definition
Quote, Associated With: Financial Services Industry, lead section, opening definition
Financial services are economic services tied to finance provided by financial institutions.
View the Source
Wikipedia, Balanced Scorecard
WikipediaAssociated With: Balanced Scorecard, Characteristics section
Quote, Associated With: Balanced Scorecard, Characteristics section
The characteristic feature of the balanced scorecard and its derivatives is the presentation of a mixture of financial and non-financial measures each compared to a 'target' value within a single concise report.
View the Source
Wikipedia, Bear Stearns
WikipediaAssociated With: Bear Stearns CollapseView the Source
Wikipedia, Collapse of Silicon Valley Bank
WikipediaAssociated With: Silicon Valley Bank CollapseView the Source
Wikipedia, Washington Mutual
WikipediaAssociated With: Washington Mutual Bank FailureView the Source
Wikipedia, Bankruptcy of FTX
WikipediaAssociated With: FTX CollapseView the Source
Wikipedia, Libor Scandal
WikipediaAssociated With: Deutsche Bank Libor Manipulation ScandalView the Source
Wikipedia, Madoff Investment Scandal
WikipediaAssociated With: Bernie Madoff Ponzi SchemeView the Source
Wikipedia, Apple Inc.
WikipediaAssociated With: Apple Inc. Initial Public OfferingView the Source
Wikipedia, History of Amazon
WikipediaAssociated With: Amazon Initial Public OfferingView the Source
Wikipedia, Google
WikipediaAssociated With: Google Initial Public OfferingView the Source
Wikipedia, AOL Time Warner
WikipediaAssociated With: AOL Time Warner MergerView the Source
Wikipedia, ExxonMobil
WikipediaAssociated With: Exxon-Mobil MergerView the Source
Wikipedia, General Motors Chapter 11 Reorganization
WikipediaAssociated With: General Motors Chapter 11 BankruptcyView the Source
Wikipedia, Eastman Kodak Bankruptcy
WikipediaAssociated With: Eastman Kodak BankruptcyView the Source
Wikipedia, Sears Holdings
WikipediaAssociated With: Sears Holdings BankruptcyView the Source
Wikipedia, Blockbuster LLC
WikipediaAssociated With: Blockbuster BankruptcyView the Source
Wikipedia, Chrysler
WikipediaAssociated With: Chrysler BankruptcyView the Source
Wikipedia, Circuit City
WikipediaAssociated With: Circuit City BankruptcyView the Source
Wikipedia, Toys R Us Bankruptcy
WikipediaAssociated With: Toys R Us BankruptcyView the Source
Wikipedia, Alibaba Group IPO
WikipediaAssociated With: Alibaba Group Initial Public OfferingView the Source
Wikipedia, Facebook Initial Public Offering
WikipediaAssociated With: Facebook Initial Public OfferingView the Source
Wikipedia, Saudi Aramco IPO
WikipediaAssociated With: Saudi Aramco Initial Public OfferingView the Source
Wikipedia, Twitter, Inc.
WikipediaAssociated With: Twitter Initial Public OfferingView the Source
Wikipedia, Uber
WikipediaAssociated With: Uber Initial Public OfferingView the Source
Wikipedia, Visa Inc.
WikipediaAssociated With: Visa Initial Public OfferingView the Source
Wikipedia, Netscape
WikipediaAssociated With: Netscape Initial Public OfferingView the Source
Wikipedia, DaimlerChrysler
WikipediaAssociated With: DaimlerChrysler MergerView the Source
Wikipedia, AT&T Inc. Acquisition of Time Warner
WikipediaAssociated With: AT&T-Time Warner Merger, Lead section
Quote, Associated With: AT&T-Time Warner Merger, Lead section
AT&T first announced its cash-and-stock acquisition of Time Warner on October 22, 2016.
View the Source
Wikipedia, Bayer Acquisition of Monsanto
WikipediaAssociated With: Bayer-Monsanto AcquisitionView the Source
Wikipedia, Procter & Gamble Acquisition of Gillette
WikipediaAssociated With: Procter & Gamble-Gillette MergerView the Source
Wikipedia, Tata Motors Acquisition of Jaguar Land Rover
WikipediaAssociated With: Tata Motors-Jaguar Land Rover AcquisitionView the Source
Wikipedia, Vodafone Takeover of Mannesmann
WikipediaAssociated With: Vodafone-Mannesmann TakeoverView the Source
Wikipedia, ArcelorMittal
WikipediaAssociated With: Formation of ArcelorMittalView the Source
Wikipedia, United States Steel
WikipediaAssociated With: Formation of U.S. SteelView the Source
Wikipedia, Kraft Heinz
WikipediaAssociated With: Kraft Heinz MergerView the Source
Wikipedia, AB InBev Acquisition of SABMiller
WikipediaAssociated With: Anheuser-Busch InBev-SABMiller MergerView the Source
Wikipedia, Pixar
WikipediaAssociated With: Disney-Pixar AcquisitionView the Source
Wikipedia, Whole Foods Market
WikipediaAssociated With: Amazon-Whole Foods AcquisitionView the Source
Wikipedia, WhatsApp
WikipediaAssociated With: Facebook-WhatsApp AcquisitionView the Source
Wikipedia, LinkedIn
WikipediaAssociated With: Microsoft-LinkedIn AcquisitionView the Source
Wikipedia, Insurance
WikipediaAssociated With: Insurance IndustryView the Source
Wikipedia, Wells Fargo Cross-Selling Scandal
WikipediaAssociated With: Wells Fargo Fake Accounts ScandalView the Source
Bernie Madoff - Wikipedia
Associated With: Bernie Madoff, lead section
Quote, Associated With: Bernie Madoff, lead section
was an American financier, con artist, and stock broker who was the admitted mastermind of the largest-known Ponzi scheme in history, worth an estimated $65 billion.
View the Source
Sam Bankman-Fried - Wikipedia
Associated With: Sam Bankman-Fried, lead section
Quote, Associated With: Sam Bankman-Fried, lead section
is an American entrepreneur convicted of fraud. Bankman-Fried founded the FTX cryptocurrency exchange and was celebrated as a "poster boy" for crypto, with FTX having a global reach with more than 130 international affiliates.
View the Source
Wikipedia, Benjamin Graham
Associated With: Benjamin GrahamView the Source
Dissenting Readings (2 dissenting readings)
Discipline Scope

Financial markets are not fully informationally efficient. Systematic cognitive biases such as overconfidence, overreaction and representativeness bias cause persistent mispricing that the efficient-market hypothesis cannot explain.

A dissenting reading, from Behavioral economists (Kahneman, Tversky, Thaler)Wikipedia, Efficient-Market Hypothesis, Wikipedia
Discipline Scope

Where finance ends and adjacent practices begin is not settled among scholars. Capital budgeting, dividend policy and capital structure are treated as core by every account, but investment banking and securities trading are sometimes described as finance's own territory and sometimes as related but distinct practices finance merely intersects, with no single boundary drawn as authoritative.

A dissenting reading, from an independent laneWikipedia, Finance, Wikipedia

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