What is Finance?

Finance is an extensive and wide term that depicts two correlated activities of study of money management and real process of procuring the required funds. It encircles the administration, formation, study of finance, money, credit, funding, venture, assets, investment, liabilities etc. which comprises all the aspects of financial system.

Finance can be defined as the branch of economics that deals in allocation of monetary resources including the management of these resources, procurement and investment. Generally finance accords with phenomenon concerned with money and market. It emphasizes on the study and analysis of investment.

Types of Finance

  • Personal Finance – Personal Finance is referred to the administration and management of finance by an individual that comprises financial decisions like budgeting, banking, investment etc.
  • Public Finance – Public Finance can be defined as the study and analysis of government’s appearance in the economy. It comprises the tax collection, tax fund, distribution of production etc.
  • Corporate Finance – Corporate Finance is the broad segment of finance which comprises in the funding of sources and the capital structure of the firms and corporations. The finance manager initiates the necessary steps and decisions to enhance the worth of the corporation to shareholders.

What are the Principles of Finance?

  • Principle of risk and return
  • Principle of cash flow
  • Principle of time value of money
  • Principle of profitability and liquidity
  • Principle of diversity
  • Principle of business cycle

Important Types of Finance

  1. Amalgamation
  2. Accounting and Finance
  3. Bond Valuation
  4. Capital Budgeting
  5. Capital Asset Pricing Model
  6. Cash Conversion Cycle
  7. Cash Management
  8. Consolidated Financial Statements
  9. Construction Accounting
  10. Corporate Finance
  11. Contingent Assets And Contingent Liabilities
  12. Cost of Capital
  13. Debt
  14. Discontinuing Operation
  15. Discount Rates
  16. Degree of Combined Leverage
  17. Derivative Markets and Instruments
  18. Derivatives
  19. Economic Order Quantity
  20. Employee Benefits
  21. Earnings Per Share
  22. Fair Value
  23. Fixed Assets
  24. Financial Statement analysis
  25. Fixed income securities
  26. Fund Flow Management
  27. Foreign Exchange Market (FOREX)
  28. Government Grants
  29. Intangible Assets
  30. Internal Rate of Return
  31. Intrinsic Value
  32. International Law
  33. Impairment of Assets
  34. Investment and Risk Management
  35. International Financial Management
  36. Joint Ventures
  37. Lease
  38. Leverage
  39. Off-Balance-Sheet Financing
  40. Private Equity and Venture Capital
  41. Return on Investment
  42. Revenue Recognition
  43. Related Parties and Their Transactions
  44. Risk and Return
  45. Stocks Dividend decision
  46. Technical Analysis
  47. Time Value of Money
  48. Valuation of a Firm
  49. Variance Analysis
  50. Working Capital

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