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Finance: For The Board Game, See - "Financial" Redirects Here. For The Georgian Newspaper, See

Finance is the management, creation, and study of money and investments, focusing on how individuals, companies, and governments acquire and spend capital. It encompasses personal, corporate, and public finance, as well as the financial markets that facilitate the flow of money through investments and financial instruments. Key areas within finance include investment management, asset allocation, and the valuation of assets, distinguishing it from related fields like economics and accounting.

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28 views1 page

Finance: For The Board Game, See - "Financial" Redirects Here. For The Georgian Newspaper, See

Finance is the management, creation, and study of money and investments, focusing on how individuals, companies, and governments acquire and spend capital. It encompasses personal, corporate, and public finance, as well as the financial markets that facilitate the flow of money through investments and financial instruments. Key areas within finance include investment management, asset allocation, and the valuation of assets, distinguishing it from related fields like economics and accounting.

Uploaded by

Nikhil Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Finance

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For the board game, see Finance (game).
"Financial" redirects here. For the Georgian newspaper, see The Financial.
Finance is a term[note 1] for the management, creation, and study
of money and investments.[1][2] Specifically, it deals with the questions of how an
individual, company or government acquires money – called capital in the context of a
business – and how they spend or invest that money.[3] Finance is then often divided into
the following broad categories: personal finance, corporate finance, and public finance.[1]
At the same time, and correspondingly, finance is about the overall "system"[1][2] i.e.,
the financial markets that allow the flow of money, via investments and other financial
instruments, between and within these areas; this "flow" is facilitated by the financial
services sector. Finance therefore refers to the study of the securities markets,
including derivatives, and the institutions that serve as intermediaries to those markets,
thus enabling the flow of money through the economy. [4]
A major focus within finance is thus investment management – called money
management for individuals, and asset management for institutions – and finance then
includes the associated activities of securities trading and stock broking, investment
banking, financial engineering, and risk management. Fundamental to these areas is
the valuation of assets such as stocks, bonds, loans, but also, by extension, entire
companies.[5] Asset allocation, the mix of investments in the portfolio, is also
fundamental here.
Although they are closely related, the disciplines of economics and finance are distinct.
The economy is a social institution that organizes a society's production, distribution,
and consumption of goods and services, all of which must be financed. Similarly,
although these areas overlap the financial function of the accounting
profession, financial accounting is the reporting of historical financial information,
whereas finance is forward-looking.
Given its wide scope, finance is studied in several academic disciplines, and,
correspondingly, there are several related degrees and professional certifications that
can lead to the field.

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