What Is Finance and Everything that you need to know about it?

in #finance2 years ago

Finance is a term that can be described as the activities that are linked with banking. There are many activities that constitute banking, capital markets, Investments, Money, or debt. Well, finance is a term that represents the management of money and the process of procuring the funds.

Finance also surpasses the creation, oversight, banking, and study of the money, credit, assets, investments, and liabilities that will make up the financial systems. There are many basic concepts in finance that will originate from the theories of microeconomics and Macroeconomics.

Well, one of the most fundamental theories is the time value of money. This is what states that the dollar today is worth more than the dollar in the future.
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What are some kinds of finance?
Just like businesses, governments, and individuals, everyone needs funding in order to operate, the finance field is going to include three main categories for finance:

Corporate finance
Personal finance
Public finance
Corporate finance:
Corporate finance can be described as financial activities that are related to running a corporation. This is usually done in various departments and divisions that will be set up to oversee all the financial activities.

One example of corporate finance is that a large company might have to decide whether to raise the additional funds through the issue of the stock or the bonds.

The investment banks are going to advise the firm of the considerations and will also help the company in order to market its securities.

The angel investors might receive the capital from the angel investors or the venture capitalists. This will be done in exchange for the percentage of the ownership. Well, if the company is thriving and is deciding to go public, then it is going to issue the shares on the stock exchange through the IPO. It will be done in order to raise cash.

There might be other cases where a company might be trying to budget its whole capital and decode the products that will finance and will be put on hold in order to grow the company.

Well, all of these decisions are going to fall under corporate finance.
Read More....https://tipsten.com/what-is-finance-and-everything/

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