Financial is an umbrella term that covers all activities involving the use of funds. Examples of financial transactions include the following:

  • Fund raising through the sale of debt and equity securities. Examples are an initial public offering, or the sale of preferred stock in a private transaction.

  • Lending funds to borrowers. Examples are the issuance of a line of credit by a bank to a company, or the issuance by a bank of a mortgage to an individual.

  • Purchase and sale of securities by investors. Examples are the sale of stock in a public company on a stock exchange, or a stock sale in the over-the-counter market.

  • Planning for financial events by individuals and businesses. Examples are retirement planning for an individual, and tax minimization planning for a company.