"Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, which is the study of production, distribution, and consumption of money, assets, goods and services..."
The study of how individuals, businesses, and organizations manage their money, investments, and assets.
Financial Statements: Understanding financial statements is crucial to comprehending a company's financial health. Financial statements comprise an income statement, balance sheet, and cash flow statement.
Financial Analysis: Financial analysis provides a framework for analyzing a company's financial performance; it involves analyzing financial ratios, charts, and graphs to understand company health.
Financial Decision-making: Financial decision-making involves determining investments, financing decisions, and dividend decisions.
Time Value of Money: Understanding the time value of money is fundamental to financial analysis because it assesses the value of money in time.
Budgeting: Budgeting is the process of planning a company’s future fiscal targets.
Investment Analysis: Investment analysis is the process of analyzing investments for risk, return, and optimal portfolio management.
Risk Management: Risk management involves identifying and evaluating risks associated with investments, and devising strategies to reduce or mitigate such risks.
International Finance: International finance examines the impact of the global market on finance, and explores financial and investment markets in different countries.
Financial Markets and Institutions: Understanding financial markets and institutions is important for investment management, securities trading, and managing portfolios.
Capital Budgeting: Capital budgeting concerns investing in or buying property, equipment or machinery to improve company finances over the long term.
Corporate Finance: This type of finance deals with financing, investments and capital management for corporations.
Investment Banking: This finance involves the issuance, underwriting, and trading of securities and assets to raise capital for companies.
Financial Planning: It involves creating financial plans to help individuals and companies achieve financial goals and objectives.
Wealth Management: Wealth management involves managing and growing the wealth of high-net-worth individuals and families.
International Finance: International finance involves managing financial transactions between countries and businesses that operate around the world.
Personal Finance: Personal finance involves managing one's personal finances, such as budgeting, saving, and investing.
Behavioral Finance: It is a study of how psychology affects financial decision making.
Public Finance: It involves managing the finances of government entities and public institutions.
Insurance: Insurance involves managing and underwriting risk for individuals and corporations.
Real Estate Finance: It involves financing, investment, and management of real estate properties.
Capital Markets: Capital market involves the buying and selling of securities, such as stocks and bonds.
Venture Capital: Venture capital involves providing funding and support to startup companies with high growth potential.
Private Equity: It involves investing in companies that are not yet publicly traded, with the goal of growing and then selling the company for a profit.
Mergers and Acquisitions (M&A): M&A finance involves the financial and strategic analysis of mergers and acquisitions, to ensure that they are financially wise and beneficial.
Derivatives: Derivatives are financial instruments used to hedge risk or increase investment returns, like futures, options, and swaps.
"Finance activities take place in financial systems at various scopes; thus, the field can be roughly divided into personal, corporate, and public finance."
"In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc..."
"Assets can also be banked, invested, and insured to maximize value and minimize loss."
"In practice, risks are always present in any financial action and entities."
"A broad range of subfields within finance exists due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility."
"Financial analysis is the viability, stability, and profitability assessment of an action or entity."
"In some cases, theories in finance can be tested using the scientific method, covered by experimental finance."
"Some fields are multidisciplinary, such as mathematical finance, financial law, financial economics, financial engineering, and financial technology."
"Ancient and medieval civilizations incorporated basic functions of finance, such as banking, trading, and accounting, into their economies."
"In the late 19th century, the global financial system was formed."
"In the middle of the 20th century, finance emerged as a distinct academic discipline, separate from economics."
"The first academic journal, The Journal of Finance, began publication in 1946."
"The earliest doctoral programs in finance were established in the 1960s and 1970s."
"Finance is today also widely studied through career-focused undergraduate and master's level programs."