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The importance of corporate finance is to understand the financial market like stock exchange and their connection with a business, and it also helps us to understand the conflicts and tensions that arise from matching the needs of those who want to invest their excess of wealth and for those who need wealth to produce goods and services.

Corporate finance is the blood of the business, it is required of the companies like Apple Inc., It is required for starting a company, survival company, running the company and it is required for expansion and variegation of a business, it means that a company cannot survive without finance. Like Apple Inc., they have a promotional finance Apple made a decision to do the stock split of 7:1 bring the per unit share price down and become more accessible to the individual investor.

The stock split resulted in the stock going from over $645.57 per share to a more accessible $92.44. Investors who owned Apple prior to the split now have 7 times more stock at a lower price, maintaining the overall value of Apple stock in their portfolio. It is also required for long-term finance to purchase fixed assets. It requires development finance for growth, expansion, and diversification of business.

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