Finance:
Finance means shortly as the management of money where includes investing, borrowing, budgeting, lending, saving and forecasting.
Finance is wide term that describes activities connected with banking, leverage or debt, credit, capital markets, money and investments.
Source: Google
Financial Topics:
There is an extensive range of topics that people in the financial industry are excited with. Here in below some of most used financial topics given.
• Interest rate and spread.
• Yield ( Coupon payments, dividends)
• Cash flows (Free cash flow, other types of cash flows)
• Financial statements (Balance sheet/Income/Cash flow statement)
• Profit (Net Income)
• Cost of Capital (WACC)
• Rates of Return (IRR, ROI, ROA)
• Dividends and return of Capital.
• Shareholders.
• Risk and Return.
• Creating Value.
• Behavioural Finance.
Types of Finance:
Many of basic concepts in Finance created from micro and macroeconomic theories. Whereas, businesses and government designate all need funding to operate, the finance field comprises three main sub- categories.
• Personal Finance.
• Corporate Finance.
• Public/Govt. Finance.
Personal Finance:
Financial planning involves exploring the current financial position of distinct to formulate techniques for future requirements within financial obligation. Personal finance is earmarked to every individual’s condition and activity, consequently financial strategies depend hugely on the person’s incomes, living necessity, goals and intentions.
For example, Distinct must save for retirement, which requires saving or investing enough money during their working lives to fund their long term scheme. This type of financial management judgment peruse under personal finance.
Personal finance comprises the buying of financial products such as credit cards, insurance, mortgages, and various types of investments. Banking is also considered an element of personal finance including saving and checking accounts and online or mobile payment services like Bkash or Nagad.
Corporate Finance:
Corporate finance means as the financial activities concerned to running a corporation, generally with a section or department set up to overlook the financial activities.
For example, a large company may have to decide whether to increase additional funds through a bond issue or stock offering. Investment banks may advise the firm on such regards and help them market the securities.
Startups may take capital from angel investors or venture investors in shuffle for a percentage if ownership. If a company prospers and decides to go public, it will issue share on a stock exchange through an initial public offerings (IPO) to increase cash.
In other cases, a company might be trying to budget their capital and fix which projects to finance and which to put on hold in order to rise the company. These types of decisions study under corporate finance.
Public/Govt. Finance:
Public Finance Comprises tax, spending budgeting, and debt issuance policies that get into how a government pays for the services it provides to the public.
The government collaborations prevent market failure by supervision the allocation of resources, ordination of income, and economic performance. Regular funding is secured commonly through taxation. Receiving from banks, insurance companies, and other nations also help finance government consumption.
A government is hoped to ensure enough social programs for its tax- paying citizens and to sustain a durable economy so that people can save and their money will be out of danger.
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