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

  • Amalgamation
  • Accounting and Finance
  • Bond Valuation
  • Capital Budgeting
  • Capital Asset Pricing Model
  • Cash Conversion Cycle
  • Cash Management
  • Consolidated Financial Statements
  • Construction Accounting
  • Corporate Finance
  • Contingent Assets And Contingent Liabilities
  • Cost of Capital
  • Debt
  • Discontinuing Operation
  • Discount Rates
  • Degree of Combined Leverage
  • Derivative Markets and Instruments
  • Derivatives
  • Economic Order Quantity
  • Employee Benefits
  • Earnings Per Share
  • Fair Value
  • Fixed Assets
  • Financial Statement analysis
  • Fixed income securities
  • Fund Flow Management
  • Foreign Exchange Market (FOREX)
  • Government Grants
  • Intangible Assets
  • Internal Rate of Return
  • Intrinsic Value
  • International Law
  • Impairment of Assets
  • Investment and Risk Management
  • International Financial Management
  • Joint Ventures
  • Lease
  • Leverage
  • Off-Balance-Sheet Financing
  • Private Equity and Venture Capital
  • Return on Investment
  • Revenue Recognition
  • Related Parties and Their Transactions
  • Risk and Return
  • Stocks Dividend decision
  • Technical Analysis
  • Time Value of Money
  • Valuation of a Firm
  • Variance Analysis
  • Working Capital
 

Author:
Category :
Publish Date :
    Social Sharing