What are the functions of Financial Managers?
1. Financial Decisions – include making decisions as to how to finance long term investments and working capital which deals with the day to day operations of the company.
2. Investing Decisions – To minimize the probability of failure, long term investments have supported by a capital budgeting analysis.
3. Operating Decisions – deal with the daily operations of the company especially on how to finance working capital accounts such as accounts receivable and inventories.
4. Dividend Policies – dividend is a part of profits that are available for distribution, to equity shareholders. The finance manager must decide whether the firm should distribute all the profits or retain them or distribute a portion and retain the balance.
The financial system links the savers and the users of funds. Savings can come from households, individuals, companies, government agencies, or any other entity whose cash inflows are greater that their cash outflows. The financial system through financial intermediaries provides a mechanism by which these savings can be channeled to users of funds, borrowers, and investors.
Some of the financial instruments issued by users of funds such as the shares of stocks and corporate bonds of publicly listed companies and the debt securities issued by the National Government has traded.
Introduction to Financial Management 