There are two types of finance, as we know: equity, being an owner’s (or owners’) money; and debt finance, which leverages equity, helps smooth cash flows and mitigates against the dilution of ownership.
The cost of finance, be it equity or debt, is very important and variable. There are numerous implements and derivatives, such as hedging, that add sophistication and flexibility to the finance environment. There are also trading implements and technologies, including the introduction of cryptocurrency and blockchain systems, that make transactions safer, faster and cheaper. Variables, such as exchange rates, have to be managed.
There are also investment choices ranging across a number of asset classes and requiring specialist advice to help users navigate their way through sometimes dangerous conditions. All in all, finance is a vital, tricky but essential environment.
To help business leaders, boards and c-suite executives access the timely information that they need to understand the Finance external operating environment, Ruthven Institute provides regularly updated information in our Business Information Database.