What to know about finance?
You often hear about finance and wonder what it is all about? What does finance mean? What are the different types of finance? What can you know about finance? Many of these are questions you may have. This article provides an answer to your various questions.
Finance, what does one know?
Finance is one of the terms mostly used in the economic field. It appears when money appears.Finance is the allocation of assets, liabilities and funds over time, processes and media to get the most out of the business. It is a term whose definition varies from one field to another. For example, in economics, finance deals with the allocation, management, investment and acquisition of resources. In the scientific world, finance is related to the creation, management and study of money. In business, it is seen as a process of raising money.
The different types of finance
There are three categories of finance namely: corporate finance, personal finance and public finance. The latter are finance having to do with states. It is a finance that emphasises everything that has to do with public goods. As for personal finance, as the name suggests, it concerns the finances of an individual, which may be managed by the individual himself or herself or another person. It can also be the finances of a group of individuals. It is therefore up to the individual or group of individuals to put strategies in place to manage this finance. Corporate finance is about business. It encompasses everything that concerns the budget of companies i.e. inflows, outflows and the like.
The areas in which finance can be found
Finance can be found in several areas such as: financial management in companies, investment in financial institutions, institutional finance, international finance, public finance and personal finance. In addition, there are terms that are often used in the world of finance. These include risk and return, profit, financial statements, shareholders, behavioural finance, cost of capital, cash flow, interest rate, dividends and yield.