What is Financial Advisory? Definition and Overview
Financial advisory is a general term that could be applied to both the private and corporate worlds.
For an individual managing their personal finances, someone who provides financial advisory services could be a financial planner, or a financial advisor.
These professionals are there to offer planning and investment advice to individuals.
They help people learn how to grow their money rather than simply holding it.
In the corporate world, financial advisory services are offered by many banks and consulting firms.
Financial advisory services are designed to help a business take a realistic look at their financial objectives and understand how they can be met.
For example, a business might seek out external financial advisory services if they’re in the process of a major merger or acquisition.
Financial advisory services can assist with things like company valuation, which is critical in those types of transactions.
Financial advisory is a term also sometimes seen in government.
Many different bodies have financial advisory boards with the purpose of providing oversight and analysis of the financial issues so that policy makers have a better understanding of the economics involved.
Examples of this include the Environmental Financial Advisory Board. The board works with the EPA and the Detroit Financial Advisory board, a local board designed to provide assistance in financial matters to the city.
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