View your list of saved words. (You can log in using Facebook.)
Acquisition and allocation of a corporation's funds or resources, with the goal of maximizing shareholder wealth (i.e., stock value). Funds are acquired from both internal and external sources at the lowest possible cost and may be obtained through equity (e.g., sale of stock) or debt (e.g., bonds, bank loans). Resource allocation is the investment of funds; these investments fall into the categories of current assets (such as cash and inventory) and fixed assets (such as real estate and machinery). Corporate finance must balance the needs of employees, customers, and suppliers against the interests of the shareholders. See alsobusiness finance.
This entry comes from Encyclopædia Britannica Concise. For the full entry on corporate finance, visit Britannica.com.
Seen & Heard
What made you look up corporate finance? Please tell us what you were reading, watching or discussing that led you here.