Finance

What is Finance?

Finance is a term that is concerned with matters regarding management, creation and study of investments. It can be divided into three categories like public finance, corporate finance and Personal Finance.

However, under these categories, there are other sub-categories related to social and psychological reasons behind financial decisions.

• Public finance includes tax systems, procedures related to budget, government expenditures, government concerns, debt issues, etc.
• Corporate finance includes liabilities, revenues, debts for business, managing assets etc.
• Personal finance includes financial decisions for households, personal budgeting, insurance, mortgage planning, savings and Retirement planning.

Major Types of Finance

1. Debt Finance

Debt finance is basically working Capital required for running the day-to-day activities of the business. You must repay the interest rate with the principal amount. The interest rate under this category is based on the loan amount, repayment tenure, the purpose of borrowing, Inflation rate, etc. There are three categories of Debt Finance. They are mentioned below:

• Short-term
• Medium-term
• Long-term

2. Equity Finance

Equity finance is when a company raises money by selling shares of the company. The buyers of the shares get a part of ownership in the company. However, this depends on the amount of share percentage they have purchased.

Popular Careers in Finance

Finance is the major area for jobs in today’s world. Some of the popular career options in finance are mentioned below:

• Commercial Banking

• Personal Banking

• Wealth Management

• Treasury

• Equity Research

• Mortgages/lending

• Accounting

• Investment Banking

• Insurance