What is Finance?

Finance is an extensive and wide term that depicts two correlated activities of study of money management and real process of procuring the required funds. It encircles the administration, formation, study of finance, money, credit, funding, venture, assets, investment, liabilities etc. which comprises all the aspects of financial system.

Finance can be defined as the branch of economics that deals in allocation of monetary resources including the management of these resources, procurement and investment. Generally finance accords with phenomenon concerned with money and market. It emphasizes on the study and analysis of investment.

Types of Finance

• Personal Finance – Personal Finance is referred to the administration and management of finance by an individual that comprises financial decisions like budgeting, banking, investment etc.
• Public Finance – Public Finance can be defined as the study and analysis of government’s appearance in the economy. It comprises the tax collection, tax fund, distribution of production etc.
• Corporate Finance – Corporate Finance is the broad segment of finance which comprises in the funding of sources and the capital structure of the firms and corporations. The finance manager initiates the necessary steps and decisions to enhance the worth of the corporation to shareholders.

What are the Principles of Finance?

• Principle of risk and return
• Principle of cash flow
• Principle of time value of money
• Principle of profitability and liquidity
• Principle of diversity
• Principle of business cycle

Important Types of Finance

1. Amalgamation
2. Accounting and Finance
3. Bond Valuation
4. Capital Budgeting
5. Capital Asset Pricing Model
6. Cash Conversion Cycle
7. Cash Management
8. Consolidated Financial Statements
9. Construction Accounting
10. Corporate Finance
11. Contingent Assets And Contingent Liabilities
12. Cost of Capital
13. Debt
14. Discontinuing Operation
15. Discount Rates
16. Degree of Combined Leverage
17. Derivative Markets and Instruments
18. Derivatives
19. Economic Order Quantity
20. Employee Benefits
21. Earnings Per Share
22. Fair Value
23. Fixed Assets
24. Financial Statement analysis
25. Fixed income securities
26. Fund Flow Management
27. Foreign Exchange Market (FOREX)
28. Government Grants
29. Intangible Assets
30. Internal Rate of Return
31. Intrinsic Value
32. International Law
33. Impairment of Assets
34. Investment and Risk Management
35. International Financial Management
36. Joint Ventures
37. Lease
38. Leverage
39. Off-Balance-Sheet Financing
40. Private Equity and Venture Capital
41. Return on Investment
42. Revenue Recognition
43. Related Parties and Their Transactions
44. Risk and Return
45. Stocks Dividend decision
46. Technical Analysis
47. Time Value of Money
48. Valuation of a Firm
49. Variance Analysis
50. Working Capital