Finance
Finance is all about money that how someone can generate, manage, & utilize money, most of the finance basic concept comes from micro & macroeconomics most of the fundamental theory in finance is the time value of money there are so many examples to elaborate the finance like
Ø investing your money in the stock market or in an investment trust
Ø lending or borrowing the money to and from the financial institution
Ø budgeting for a corporation or for govt is finance.
Types of finance
There are three types of finance
Ø Personal Finance
Ø Corporate Finance
Ø Public Finance
1. Personal Finance:
Personal Finance deals with an individual or a family that how they can manage the money. They need to focus on how they can earns & and save money for the future, Public finance helps the individual or family to invest in the stock market, Budgeting and helps to make short-term financial goals & achieved them accordingly by financial planning.
2.Corporate Finance:
Corporate finance also known as business finance deals how a corporation can generate money and maximize the value of shareholder through financial planning, in corporate finance the dept of finance of a particular company take a decision about future.
For example, if a company wants to open a new production unit, they need to generate the funds so the finance dept contacts their bank and ask for a loan, on the basis of funding resource they make strategy and plan accordingly and attain the financial goals.
3.Public Finance:
Public finance control by the state government helps the people & stabilize the economy by receiving grants from the federal government, there are so many resources of government to generate funds the most important is collecting tax from the people, borrowing the money from a financial institution like commercial Bank Insurance company.
In public finance, the government manages the fund by making financial arrangements every year that how they can spend the money on development for the people of the state they also need to pay bank loan public finance control the whole market.
Sources of financial information:
There are so many sources of financial information but the major three areas below.
Ø Google Finance (market data, stock prices)
Ø The SEC website (company filings)
Ø Bloomberg news (company and industry news)
Types of financial statements:
There are four types of financial statement
Ø Statement of Financial Position
Ø Income Statement
Ø Cash Flow Statement
Ø Statement of Changes in Equity
Types of Financial Institutions:
There are 9 major types of financial institutions that provide a variety of services.
Ø Central Banks
Ø Retail and Commercial Banks
Ø Internet Banks
Ø Credit Unions
Ø Savings and Loan Associations
Ø Investment Banks and Companies
Ø Brokerage Firms
Ø Insurance Companies
Ø Mortgage Companies
Types of financial markets:
Ø Over-the-Counter Markets
Ø Bond Markets
Ø Money Markets
Ø Derivatives Market
Ø Forex Market