Types of FinanceBecause individuals, businesses, and government entities all need funding to operate, the finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.
Personal financeFinancial planning involves analyzing the current financial position of individuals to formulate strategies for future needs within financial constraints. Personal finance is specific to an individual’s situation and activity. Therefore, financial strategies depend largely on the person’s earnings, living requirements, goals, and desires
Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. Basically, finance represents money management and the process of acquiring needed funds. Finance also encompasses the oversight, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems.
Many of the basic concepts in finance originate from microeconomic and macroeconomic theories. One of the most fundamental theories is the time value of money, which essentially states that a dollar today is worth more than a dollar in the future.
KEY TAKEAWAYS
Personal financeFinancial planning involves analyzing the current financial position of individuals to formulate strategies for future needs within financial constraints. Personal finance is specific to an individual’s situation and activity. Therefore, financial strategies depend largely on the person’s earnings, living requirements, goals, and desires
Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. Basically, finance represents money management and the process of acquiring needed funds. Finance also encompasses the oversight, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems.
Many of the basic concepts in finance originate from microeconomic and macroeconomic theories. One of the most fundamental theories is the time value of money, which essentially states that a dollar today is worth more than a dollar in the future.
KEY TAKEAWAYS
- Finance encompasses banking, leverage or debt, credit, capital markets, money, investments, and the creation and oversight of financial systems.
- Basic financial concepts are based on microeconomic and macroeconomic theories.
- The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.
- Financial services are the processes by which consumers and businesses acquire financial goods. The financial services sector is a primary