Investing for Beginners , investing

Investment finance is finance that is related to investment. Investment market is a part of financial market, so we can say that investment is a part of finance. 

Investment finance specializes on financial calculations at investment field. For example, portfolio optimization, risk – return calculations, relative market calculations for stocks, or some economic factors projection to investment market estimates would refer to investment finance. 

However, ‘investment finance’ isn’t an official term and there is no exact definition of it. Investment is not some art or a thing of intuition and always has to be considered as a part of finance. Of course some small investors are taking investment decisions intuitively but it would be unforgivable for professional investors that usually represent some institutions. Institutional investments always have to be rational and reasoned by financial calculations. 

Such financial calculations used in investment should include:

• Market research and economical research
• Financial statements’ analysis of a target company
• Financial analysis of competitors
• Relative valuation and discounted cash flow analysis
• Financial planning for future periods