What is finance ?
Finance is a term for matters
Types of finance regarding the management, creation and study of money and investment.
In General terms finance meaning is resource.
Finance is mainly devided into three segment
- Personal finance.
- Corporate finance.
- Public finance.
Personal finance is managing and allocating the money or funds of an individual to archive the desired goals in terms of saving and investment.
Personal finance includes investment in education, assets like real estate, health expense etc.
- Protection against unforeseen and uncertain personal events.
- Preparing for long term
Corporate finance expenses or purchases involving a huge amount.
- Paying for a loan or debt obligations.
- Investment and wealth accumulation goals
- Preparing for retirement etc.
Corporate finance is about funding the company’s expenses and building the capital structure of the company.
It deals with the source of funds and the allocation of funds for resources and increasing the value of the company by improving the financial position.
- Acquisition and investing in stocks or other assets.
- Capital budgeting.
- Equity, debt or creditors etc.
- Determining the unity of unappriated profits for future investment, operation utilisation or distribution within the shareholders.
Public finance is the study of finance related to government entities.
It deals with the role of government income and expenditure in the economy.
Public finance includes distribution of income, resources allocation.
Funds are majorly from taxes, borrowing from banks or insurance companies.
- Identifying the expenditure required by the public.
- The source of revenue for the public entity.
- Determining the budgeting process and source of funds.
- Issuing debts for public projects.
- Tax management.