Corporate finance is primarily concerned with maximizing shareholder value through long-term and short-term financial planning and the implementation of various strategies. Everything from capital investment decisions to investment banking falls under the domain of corporate finance.
A financial investment is an asset that you put money into with the hope that it will grow or appreciate into a larger sum of money. A few of the most common types of financial investments are CDs and bonds, which pay interest to the owners. In addition to handling the use of investment capital, corporate finance is also responsible for sourcing capital in the form of debt or equity.
A company may borrow from commercial banks and other financial intermediaries or may issue debt securities in the capital markets through investment banks. A company may also choose to sell stocks to equity investors, especially when raising long-term funds for business expansions.