Which of the following is not a function of a finance manager?
Manipulating the share price of the company is not a function of the finance manager. The manager who looks after the activities of the Financial Department is known as the Financial Manager or Controller of Finance.
The major functions of the financial manager are as follows:
1. Formulation of Objectives: Formulation of financial objectives is the fundamental function of the financial manager. These objectives should be in tune with the overall objectives of the organization.
2. Forecasting and Estimating Capital Requirements: A financial manager has to estimate and forecast the financial requirements of a business. He should make estimates for both short-term and long-term requirements of funds.
3. Mobilization of funds: Financial services aid in the mobilization of funds from investors, individuals, institutions, and corporate entities. Funds are mobilized through various financial instruments like equities, bonds, and mutual Funds. Financial institutions, corporate entities and the government utilize the mobilized funds.
4. Procurement of Funds: After estimating the capital requirements and deciding about the sources of finance, the financial manager has to take the necessary steps to procure the funds.
5. Investment of Funds: The funds procured should be prudently invested in various projects. The technique of capital budgeting may be helpful in selecting a project. While taking investment decisions, the financial manager has to keep in mind the principles of profitability, liquidity, and safety.