finance

inance
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Finance


Financial markets

Bond market
Stock (Equities) Market
Forex market
Derivatives market
Commodity market
Money market
Spot (cash) Market
OTC market
Real Estate market
Private equity
Market participants

Investors
Speculators
Institutional Investors
Corporate finance

Structured finance
Capital budgeting
Financial risk management
Mergers and Acquisitions
Accounting
Financial Statements
Auditing
Credit rating agency
Leveraged buyout
Venture capital
Personal finance

Credit and Debt
Employment contract
Retirement
Financial planning
Public finance

Tax
Banks and banking

Fractional-reserve banking
Central Bank
List of banks
Deposits
Loan
Money supply
Financial regulation

Finance designations
Accounting scandals
History of finance

Stock market bubble
Recession
Stock market crash
History of private equity
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The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important. Financial assets, known as investments, are financially managed with careful attention to financial risk management to control financial risk. Financial instruments allow many forms of securitized assets to be traded on securities exchanges such as stock exchanges, including debt such as bonds as well as equity in publicly-traded corporations.Contents [hide]
1 The main techniques and sectors of the financial industry
2 Personal finance
3 Corporate finance
3.1 Capital
3.2 The desirability of budgeting
3.2.1 Capital budget
3.2.2 Cash budget
3.3 Management of current assets
3.3.1 Credit policy
3.3.1.1 Advantages of credit trade
3.3.1.2 Disadvantages of credit trade
3.3.1.3 Forms of credit
3.3.1.4 Factors which influence credit conditions
3.3.1.5 Credit collection
3.3.1.5.1 Overdue accounts
3.3.1.5.2 Effective credit control
3.3.1.5.3 Sources of information on creditworthiness
3.3.1.5.4 Duties of the credit department
3.3.2 Stock
3.3.3 Cash
3.3.3.1 Reasons for keeping cash
3.3.3.2 Advantages of sufficient cash
3.4 Management of fixed assets
3.4.1 Depreciation
3.4.2 Insurance
4 Shared Services
5 Finance of states
6 Financial economics
7 Financial mathematics
8 Experimental finance
9 Behavioral finance
10 Intangible Asset Finance
11 Related professional qualifications
12 External links
13 See also


[edit]
The main techniques and sectors of the financial industry
Main article: Financial services

An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise capital by borrowing or selling equity claims, decreasing its expenses, or increasing its income. The lender can find a borrower, a financial intermediary such as a bank, or buy notes or bonds in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary pockets the difference.

A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays the interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity. Banks are thus compensators of money flows in space.

A specific example of corporate finance is the sale of stock by a company to institutional investors like investment banks, who in turn generally sell it to the public. The stock gives whoever owns it part ownership in that company. If you buy one share of XYZ Inc, and they have 100 shares outstanding (held by investors), you are 1/100 owner of that company. Of course, in return for the stock, the company receives cash, which it uses to expand its business; this process is known as "equity financing". Equity financing mixed with the sale of bonds (or any other debt financing) is called the company's capital structure.

Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments and methodologies, with consideration to their institutional setting.

Finance is one of the most important aspects of business management. Without proper financial planning a new enterprise is unlikely to be successful. Managing money (a liquid asset) is essential to ensure a secure future, both for the individual and an organization.

[edit]
Personal finance
Main article: Personal finance

Questions in personal finance revolve around
How much money will be needed by an individual (or by a family), and when?
Where will this money come from, and how?
How can people protect themselves against unforeseen personal events, as well as those in the external economy?
How can family assets best be transferred across generations (bequests and inheritance)?
How does tax policy (tax subsidies or penalties) affect personal financial decisions?
How does credit affect an individual's financial standing?
How can one plan for a secure financial future in an environment of economic instability?

Personal financial decisions may involve paying for education, financing durable goods such as real estate and cars, buying insurance, e.g. health and property insurance, investing and saving for retirement.

Personal financial decisions may also involve paying for a loan, or debt obligations.