We live in a world filled with many simple and complex concepts. Each of these concepts requires a set of qualities and attributes, which required to study carefully. Every concept is unique by itself and is no lesser than any other. It is not a rule that people who understand complex subjects will easily comprehend abstract subjects. Many subjects have just theoretical value. Many others establish a relationship between the subject matter and human’s very existence. However, some subjects have direct relevance to the day-to-day life of human beings. One such subject is finance.
What is Finance exactly?
To a layman, finance is the money he has in hand. However, in realistic terms, finance is a field that studies the dynamics of investments on varying uncertainty levels and risk conditions. Finance is the thorough study of Assets and Investments and their dynamics in different market situations. It is the art of managing money on a day-to-day basis. Finance studies the risks involved in investing in assets and various other forms, which may directly have an impact on the return on investment
The different faces of Finance
Finance has five major classifications based on the activities. The following are the five major classifications, classified as per their activities.
Private Finance or Personal Finance
Direct and Indirect Finance
Long Term and Short Term Finance
Theories of Finance
All those who are pursuing studies or career in finance and who are interested in doing the same must basically understand the various finance principles applicable in the different areas where finance play a significant role. Unlike the theories of different science branches, these do not just remain theories but add value in real time situations. The following are some of such theories.
Intangible Asset Finance
Each of these theories gets applied in an individual or combined many areas of public and corporate financial activities.
Finance is one of the most important aspects of human life. Even for the accumulation of all other criteria like human resources, support systems, and IT infrastructure, finance acts as the basis. When the term finance is using just as money in simple terms, experts in the field channelize finance using it for allocation and acquisition purposes, and maximizing customer wealth. The source of finance across all types mentioned above can be one’s own or a borrowed one. Go check Finance Christchurch for more details.