Finance

1. What is finance
• 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 micro 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 driver
of a nation's economy.

2. What are the Types of Finance

Since 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 Finance :-
Financial planning involves analyzing the current financial position of
individuals to formulate strategies for future needs within financial constraints.
Personal finance is specific to every individual's situation and activity;
therefore, financial strategies depend largely on the person's earnings, living
requirements, goals, and desires.
 • Public Finance :-
Public finance includes tax, spending, budgeting, and debt issuance
policies that affect how a government pays for the services it provides to the
public.

• Corporate Finance

Corporate finance refers to the financial activities related to running a

corporation, usually with a division or department set up to oversee those
financial activities.

One example of corporate finance: A large company may have to decide

whether to raise additional funds through a bond issue or stock offering.
Investment banks may advise the firm on such considerations and help them
market the securities.

3. What Are Financial Activities?

• Financial activities are the initiatives and transactions that businesses,

governments, and individuals undertake as they seek to further their
economic goals. They are activities that involve the inflow or outflow of
money. Examples include buying and selling products (or assets), issuing
stocks, initiating loans, and maintaining accounts.
• When a company sells shares and makes debt repayments, these are
both financial activities. Similarly, individuals and governments are
involved in financial activities, such as taking out loans and levying
taxes, which further specific monetary objectives.