What
is a financial manager? Well, a financial manager is a type of manager who
oversees finances and budgets, also collects financial date while assessing
past performances of an organization or company. Their primary job is to anticipate trends and development and plans
accordingly. (All About Careers, 2018) Financial managers are also the people
who decide where a company will invest their funds, it’s even his decision to determine how to distribute surplus of money that would distribute amongst shareholders.

 

Financial managers study the economic progression of a company and decide where to borrow or
gather money from within an organization to meet financial needs. Producing financial reports, direct investment
activities, and develop strategies while planning for the long-term financial
goals. Financial managers work in different places such as banks and insurance
companies. Nowadays financial managers do more analyzing of business
reports and forecasting, they monitor financial details and meet all legal
requirements. They supervise employees to ensure all financial reporting and
budgeting done correctly. They also provide the review of company financial reports
to reduce cost, saving the company money.

 

Most financial managers work with senior
executives and with the heads of departments to develop data that any of the
managers might need. They can be employed
in the private or public sectors such as
multinational corporations, retailers, financial institutions, charities,
manufacturing companies, universities, and business companies. (Financial
Manager, 2018)

 

            Financial managers are required to
hold the highest ethical standards because of the internal and external
stakeholders depending on their decisions. They need to be accurate, the integrity of the most senior, timeliness, and transparency. Due to Enron and
WorldCom, financial managers are under the microscope more than ever to ensure
their customers or business are granted
the complete, correct information to
succeed. Financial managers are not to hide or obscure information that would
render relevant financial details
impossible for shareholders to understand. (Ethical Issues, 2018)

 

Financial
managers should not be prejudice, show any bias, or conflict of influence when
it comes to any of their actions. They should be comfortable disclosing any conflicts when it comes to investing, this
means not lured into manipulating their
customers.  Most large companies have
instituted a code of ethics that are general guidelines to encourage employees
to behave ethically and responsibly. It
also calls for a group to have a specific
code of ethics that professionals are bound by and are to conduct themselves as
professionals.

 

            Due
to, companies such as Enron and WorldCom embezzling and inaccurately reporting
financial statements to ensure profits for top executives. Such safeguards are
in place to protect investors such acts as Chief Financial Officers Act of 1990
(CFO Act), Government Management Reform Act of 1994 (GMRA), and Accountability
of Tax Dollars Act of 2002 (ATDA).  The CFO Act lays the foundation for
comprehensive reform of the federal financial management system. It’s also appropriate
because it establishes a leadership structure that audits financial statements.

 

The other federal safeguard is the GMRA
which reduces reporting abuse; it expands
the number of agencies that the CFO Act must report too. ATDA is the final
safeguard since it requires reporting all executive branches of an organization to submit audited financial
statements. In 2002, the Sarbanes-Oxley Act protected
investors from fraud by corporations while adding felony criminal charges
against the culprits involved. These are considered some of the leading safeguards since they watch over the board of directors and any other
financial officers while ensuring no other financial officers are involved in
any malpractice dealings.

           

There are two U.S. Stocks
markets; they are the New York Stock Exchange (NYSE) and the National
Association of Security Dealers and Automated Quotations (NASDAQ). The
difference between the two is NASDAQ takes place electronically while the NYSE
takes place on the floor of exchange in person. Another difference is the NYSE
stocks are well-established companies with more significant turnover compared
to NASDAQ which stocks are primarily technological companies. The best private
investment option would be the NASDAQ due to there merger with the American
Stock Exchange (AMEX).

 

Investing one’s hard
earned money is an important decision, which includes many ways to invest.  Few of the investment products that are
available are bonds, stocks, mutual funds, money markets, capital markets, and
exchange-traded funds. Bonds are investment security which obligates the issuer
to pay the bondholder a specific amount of money. These types of bonds include
U.S. Treasury bonds, agency, municipal, corporate, and high yield bonds. Stocks
give ownership of a company with shares that are also called equities, these
shares once bought by a person are called shareholders. 

 

However, mutual funds are
different in which a company pools money from multiple investors than invests
that money into securities which can include stocks, bonds, or short-term debt.
The exchange-traded funds (ETFs) are funds which track indexes from the
NASDAQ-100 Index, and the Dow Jones. Buying shares
of an ETF mean buying shares of a portfolio that tracks return and yields.

 

The different types of institutions that sell investment products are investment banks,
stock exchanges, brokers, and businesses. Investment banks are a financial
institution which helps assist wealthy individuals, corporations, and
governments while the stock exchange allows for investors to purchase and sell
stocks on the stock market. The brokers are individuals or firm employed by
others which negotiate contracts for commissions or plan and organize sales.
There are multiple types of brokers such as commercial or merchandise broker,
insurance, real estate, and stockbrokers. A business will sell stocks to
investors to raise capital for the company.
All these institutions that sell
investment products will help investors invest their money responsibly.

 

Some of the
investment products available include ownership investments which are all about
owning an asset, and they include stock,
precious objects, real estate among others. There is also lending investments
which are about buying a debt that is expected to pay, and they include bonds,
certificate of deposit and TIPS (treasury inflated protection securities).
Other products also include cash equivalents, REIT
(real estate investment trusts), mutual funds and exchange-traded funds. These products are offered by institutions such as the government which can provide bonds and public companies that offer
shares

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