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Introduction Of Finance
Finance is a French word which means the management of large amount. It is a branch of economics which is concerned with the resource allocation as well as management of resources, acquisitions, investments. In simple terms, finance deals with the matters related to money and the markets. According to the entrepreneurs, finance is concerned with cash and According to the experts,
Finance is a simple task of providing the necessary funds required by the business of entities like companies, firms, individuals, governments, to achieve their economic objectives. Finance is the study by which an investor can allocate their assets over time under conditions of certainty and uncertainty. The key point in finance which affects every decision which is being made in Finance is the time value of money, stating that a unit of currency today is worth more than the same unit of currency tomorrow.
Topics in Finance
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Asset Types Raising Capital Financial Software Tools |
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Finance Definition
Finance is the science which describes the management, creation, investments and the study of money, banking, assets, and liabilities. It consists of financial systems which include public, private, government and non-financial service providers, and the study of financial instruments which can relate to the countless assets and liabilities. Finance basically aims to price the assets based on the risk associated with it and the expected rate of return.
Finance can be divided into three categories:
a) Public Finance
b) Corporate Finance
c) Personal Finance
Each of the categories is again divided into subcategories.
The study of finance can be done in various forms, depending on the area of finance which one wishes to study. The study of behavioral finance aims to study the more human side of a science considered by most to be highly mathematical, while in finance both the macro and micro-economic factors affect virtually the levels of financial decisions and outcomes at all levels. Finance is the soul of economic activities. Finance have become the prerequisite for obtaining the physical resources which is needed to perform the productive activities and performing the business activities like sales, compensations, contingencies and so on. Finance has become an organic function and is an important part of our day-to-day life.
Following are some of the features of finance:
a) Investment opportunities
b) Profitable opportunities
c) Optimal mix of funds
d) System of internal controls
e) Future Decision making
Topics in Finance
