Finance, or the financing of corporations, is one of the four core elements from the discipline of business economics. In a strict sense finance is concerned with corporate finance, the financing of companies. In order to finance companies, it is essential to possess knowledge of financial markets as well. Consequently, finance in a broad sense is also concerned with this field. These topics are mainly addressed by the operating companies FEI BV and ESAA.

Corporate Finance
Corporate Finance is concerned with all aspects of the financing of companies. Above all, the financing structure of a corporation is important: which kind of capital is used to finance the company? The most important considerations concerned with this question are the financing risks and the resulting return objectives. This is related to the way in which a company succeeds in creating shareholder value. Furthermore, whether or not to carry out certain investments and the valuation of activities is also considered to be part of financing of corporations.

The ‘human side’ is important in this area as well. Currently, there is an ongoing discussion regarding the rational or irrational way in which financial decisions are made. The inclusion of stakeholders also matters when taking financial decisions.

Financial Markets
In the context of corporate finance, the relevant knowledge of financial markets concerns the way in which they function and how a corporation obtains capital through these markets. On the one hand, it concerns the way in which a company raises equity. This can be done through a stock exchange listing and freely tradable shares, but equity can also be proposed by parties such as venture capitalists. On the other hand, it concerns borrowed capital which can be raised through the financial markets. A large part of this involves loans from banks, but a corporation can also be financed by tradable bonds. In short, it is important to have knowledge regarding the functioning of financial markets in order to finance companies.