Explore Finance

What is Finance?

Finance is the funding and management of money for personal or business use. The study of finance encompasses:

• The nuances of gains and loss
• Management
• Banking activities
• Credit
• Investments
• Assets
• Liabilities

Studying the art of finance can help with the management of a household, entrepreneurship, or larger business. A study of basic finances will cover an overview of the main topics of finance, while a more categorical approach will focus on a specific type of financial study. Three main types of financial literacy critical to the finance field are corporate finance, personal finance, and public finance.

Corporate finance is the study of financial management and activities regarding a corporate business. Corporations, legally, are business entities and usually have a financial department to oversee the activities of the business. Large, publicly traded corporations on the market may offer stock to raise funds for their company. Starter corporations may receive funding from investors.

Personal finance is the study of financial management and activities regarding one's personal life and home. This activity entirely depends on one's income, personal economic activities, requirements for living, and retirement goals. Activities included in personal finances may cover the use of:

• Credit cards
• Personal loans
• Mortgages
• Banking
• Investments

A study of public finances looks at how the government pays for public services, infrastructure, and goods. The government does this by taxing its citizens, budgeting, and allocating the resources to spend. Public financing includes state and federal governments, taxing oversight, and distribution of these resources. Public financing also includes borrowing funds from banks and other nations to ensure financing for the government.