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What is finance?

Finance is a broad term. To put it in perspective, finance is the science of managing funds. The term is not restricted to the process of managing or exchange of money, but also ways to raise and allocate monetary resources over time. Finance also requires critical analytical works, as it often involves sophisticated calculations and interpretations on the same. These calculations also usually involve numerous statistical factors and graphs.

Many universities across the globe offer finance course. The primary aim of the course is to provide finance students with a platform to, launch and develop their finance and business career. The finance course also aims at giving students a clear understanding of the various theoretical financial principles and the practical implementations of these finance principles in the world of business.

Categories of Finance

The main categories of finance will include:

  1. Corporate Finance: corporate finance specializes in the funding and the capital structure of corporate. Studying Corporate allows students to keep up with the current trends in finance. Careers here include becoming an accountant, a business manager, an advisor, an analyst or more.
  2. Behavioral Finance: this field of finance studies the psychology of managers and investors and how this psychology affects their financial decision and the market.
  3. International Finance: this branch deals with the study of exchange rates and how they affect international trade.
  4. Personal Finance: personal finance is essential as no one is sure of the upcoming events and unseen problems. It is critical for an individual to protect himself against the unforeseen personal circumstances. Personal finance is also essential for planning purposes to secure financial future in an environment of economic instability. Personal finance also tackles the effect of tax subsidies or penalties on the management of personal finances.
  5. Financial theory: it is often characterized by financial mathematics, financial economics, and Experimental Finance.

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