Seminar About the financial accounting and share market Info 

A Guest Lecture was organized at SAITM, Gurgaon campus on Financial accounting and Share markets. All details from account opening followed by company share identification , purchasing , selling and tips on how to invest were shared. Mr. Ankit who is a certified investor from Bombay stock exchange came and shared the tips with the students. Details on investment on mutual funds were also taken care of. Here are some learning moments.

Why Is Financial Accounting Important?

Financial accounting is important because:

It Is Required by Law

Statements such as the balance sheet, income statement and cash flow statement are legally required for registered companies. These statements are typically included in a company’s annual report.

You Need It for Financial Planning

By examining these statements, a company’s management can troubleshoot money issues and plan for the future.

External Parties May Request Financial Statements

A private company is not required to share its financial statements outside of the organization; only registered (public) companies are. Registered companies are businesses that issue shares.

Here are some individuals or organizations that may reference your financial statements:

1. Investors – They will need to see the numbers in order to decide whether the business is attractive enough to invest in.
2. Banks – If a company wants a loan, the bank may request certain financial statements. This will allow the company to show that they have the ability to pay the loan back on time.
3. Auditors – If the company is subject to an IRS audit, then government auditors are going to start their analysis with these statements.
4. Lawyers – If there’s a lawsuit or other legal action related to a company’s income or expenses, lawyers will need to be able to analyze this information.
5. Suppliers – Suppliers may want to view a company’s financials before providing goods or services to ensure that they will be able to pay their invoices.

Stock Market-

The term stock market refers to several exchanges in which shares of publicly held companies are bought and sold. Such financial activities are conducted through formal exchanges and via over-the-counter (OTC) marketplaces that operate under a defined set of regulations. 

Both “stock market” and “stock exchange” are often used interchangeably. Traders in the stock market buy or sell shares on one or more of the stock exchanges that are part of the overall stock market.

• Stock markets are venues where buyers and sellers meet to exchange equity shares of public corporations.
• Stock markets are components of a free-market economy because they enable democratized access to investor trading and exchange of capital.
• Stock markets create efficient price discovery and efficient dealing.