When talking about my future interests, numerous things come to mind and it is hard to decide on what to talk about. However, the thing that catches my mind the most is the vast world of corporate finance. A broad definition for this profession is that it revolves around the funding and cash flow of large companies. The world of corporate finance thrives on the idea of the professional trying to increase the value of the company they work for often time in terms of shareholder wealth. A shareholder is any person who has some type of interest in a company. This could be a supplier, a customer, employees, stockholders, and even the owner.

Risk Management:
A key factor in Corporate Finance is limiting the risk one’s company may acquire and can potentially suffer a loss on. It can be a tricky process because the wide variety of options, such as dealings with banks are almost associated with no risk, but then trading stocks is notoriously unreliable at times because it can be very uncertain when prices will change (Helbaek, Lindset, Mclellan 2010). This is true but as stated also in this source is that you don’t get high returns on bank related transactions, but stocks on the other hand have a higher rate of return on well-chosen investments (Helbaek, Lindset, Mclellan 2010). Additionally, you always hear people, when talking about stocks, talk about diversification. Diversification is the idea that you don’t buy multiple stocks of the same industry because if that industry takes a hit, all your stocks in that area will fall and you will end up with large losses. The way most finance professionals judge this in a more technical rate is with formulas that can help show how much a stock will shift during certain time periods (Helbaek, Lindset, Mclellan 2010). Finally, the last way to not lose your company a large amount is through a process known as covariation. This is the idea of investing in multiple stocks at one time while using diversity, but it also relies on the theory that not all the stocks will fall at once and the losses and wins should balance out with a hopefully positive balance sheet at the end (Helbaek, Lindset, Mclellan 2010).

Mergers and Acquisitions:
A part of finance that really catches my eye is the idea of identifying companies that are prime for takeover or want to sell and doing the research to identify if it is the right decision. The source used to talk about this section of the paper identifies two reasons behind a merger. They are either the company wants to expand and grow their business or they want to diversify their business like you do with stock in order to make sure that your business will not suffer hard times because of a shortage of need for your goods or services (Clayman, Fridson, Troughton, 2012). These deals come with a large amount of risk due to the costs associated with them and because of the time and money that is spent to research and finish the deals (Clayman, Fridson, Troughton, 2012). The types of mergers vary throughout this source because the definition or name depends on how the person trying to acquire the company goes about business, whether it is a hostile takeover or if it is a mutual agreement on both sides of the table (Clayman, Fridson, Troughton, 2012). In the end however, these deals happen throughout the finance world and take a lot of careful consideration along with them to ensure that the deal is beneficial for both sides of the deal.

Reference List
Clayman, M., Fridson, M., & Troughton, G. (2012). Mergers and Acquisitons. In Corporate
Finance: A practical approach. John Wiley & Sons.
Helbaek, M., Lindset, S., & Mclellan, B. (2010). Risk Management. In Corporate Finance.
McGraw-Hill Education.