The first definition of Finance is that money has a price and that those who lend money to those who need it take a risk and must therefore be remunerated for that risk. This definition can vary according to the times and political ideologies in force (Marxism, liberalism, etc.).
Those who finance by contributing capital require a return to compensate for the risk they are taking, which is known as profitability. Everyone who has extra money (such as household savers) wants to be profitable. This surplus is used to finance those who need it (a business looking to expand, a household looking to buy its main home). The two are brought together by banks and financial markets.
Finance can be divided into 4 main areas of specialisation: market, corporate, banking and real estate finance.
The operation and transactions that take place on financial markets are the subject of market finance. Market finance jobs can generally be divided into 3 main categories: front office (jobs involving direct contact with clients or creating products or trading for clients), middle office (risk management, compliance, IT finance) and back office (settlement verification in particular).
corporate finance : the aim is to assess and optimise a company’s financial health. The teaching provided is essentially based on financing (capital raising operations), financial analysis and corporate financial management.
Banking finance: this covers all the subjects that will enable our students to work in retail banking, private banking, cooperative or mutual banking and investment banking. The increasing complexity and digitalisation of financial operations requires increasingly advanced skills in these areas.
real estate finance: this covers the entire life cycle of real estate products, from acquisition, sale and rental to construction, financing, operational management and renovation.
Description
What subjects pertain to finance? During their finance training, students may be required to study a wide range of finance subjects: accounting, analysis, auditing, market finance, management control, compliance, etc. Here are the most common definitions:
A general understanding of the business world includes knowing how the world works, what the most recent financial news is, and how to discuss it with your professional network. Economy: this covers all activities relating to the production, distribution and consumption of wealth. It is often divided into micro and macro economics.
Accounting: accounting is a discipline that provides a real-time statement of a company’s financial position. Accounting is the process of gathering crucial financial data, which is required by businesses to make sound business decisions and abide by applicable laws. It can also help investors, creditors and regulators understand a company’s financial health, as it provides a clear picture of the company’s past and present performance.
Financial analysis involves analyzing accounting documents, particularly the tax return, which is submitted annually to the taxing authorities. This financial analysis provides information on the health of a company, particularly in terms of solvency and profitability. This information helps the company’s directors to make informed decisions.
Audit, internal and external: this is an analysis of how a company or one of its departments operates. This audit can be carried out internally by a dedicated employee or externally by a specialist company.
A management system designed to improve a department’s or company’s performance is called management control. The aim is to improve the ratio of resources deployed to results obtained. It is most often referred to as cost control.
