In simple words, the management of money is called Finance. Finance includes activities such as banking, leverage or debt, credit, capital markets, money, and investments. For the smooth running of a business, financial knowledge is like bread and butter. Finance exists everywhere, be it in human resources, marketing, production, or any research-related activity.
Types of Finances
1. Personal Finance
The financial activities related to an individual are called personal finance. financial strategies depend upon the person’s earnings, savings, living requirements, goals, and desires. Personal finance deals with family budgets, personal investment, etc. For example, I am investing my money in Fixed deposits for the long term to cover my expenses in the future and for returns.
2. Corporate Finance
Corporate Finance plays a very important role in investment decisions, capital raising, planning of finances, risk management, and financial monitoring. A few examples of corporate finance are executing in an Initial public offering (IPO).
3. Public Finance
It is also known as Government Finance. It is the study of the income and expenses of the state. It deals only with the Finances of the Government( central, state, and local) The main components of public Finance include activities to generating revenue, making expenditures to support the society, Budget, Tax collection, national debt, and managing public Finances In short Finance is not just a word.
Every little thing is dependent on finance it is itself a very broader term I will cover more about Finance in another article.
I will cover more about Fintech in another article. Till then share this article with your friends and family who don’t know about fintech. Comment if I miss anything 😛
