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Fri 26 Aug, 2005 04:45 am
What is Finance?
This is one of those "easy" questions where the answer is tough to put in words.
Classically, finance has been defined as "The organizational discipline concerned with the management of capital assets, focusing on sources and uses of financial capital."
Such definitions are valid, but fail to capture the diversity of finance functions. So, instead of creating an all-encompassing definition, let me describe several aspects of finance.
Most finance functions can be divided into two types:
Finance Functions That Take Place Within an Organization
These include budgeting, targeting, forecasting, accounting, auditing, and the like.
Finance Functions That Take Place Outside the Organization
These primarily deal with participation in markets.
Some of the Markets that Finance Professionals Participate in
Stock market
Derivatives market
Government Securities market
Commodities market
Currency market
Bullion market
Real Estate market
Wholesale Debt market
Primary Spheres in the World of Finance
Corporate Finance
Managing a company's money
Financial Services
Banking, Insurance, Real-estate
Portfolio Management
Managing money in stocks and other assets, Financial planning
Investment Banking
Raising money, Mergers and acquisitions
International Finance
Managing money and other assets across national borders.
time value of money and how can you make the most of it...
that's my simple view...
Finance is looking after money in a nutshell. It involvesof knowledge of the financial markets above and how they work. It involves borrowing money to do business, borrowing money for investments, lending money both domestically and overseas, etc etc
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