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Why is it important for people in finance to know about capital markets, investing and financial management?

I am trying to figure out how to explain in an essay question why it is important that a thorough knowledge of all three is needed even if they only work in one area.

Public Comments

1. That is because in the business world, all of those three areas are overlapping and intertwined. You cannot fully master one without equal grasps on the others. Capital markets dictate investment strategies. Strategies determine decisions and course of actions that financial managers will take. And these actions in turn, collectively shape and affect the immediate future state of the capital markets.
2. The three are closely interconnected !! The capital market is the market for securities, where companies and the government can raise long-term funds. The capital market includes the stock market and the bond market. Investment, in business means , the purchase by a producer of a physical good, such as durable equipment or inventory, in the hope of improving future business. Financial management encompasses the two core processes of resource management and finance operations. Also called FM. See also finance operations; resource management operations. Hence a finance person is expected to possess thorough knowledge in the above fields.