Finance

Finance studies and addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects. The term finance may thus incorporate any of the following:

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• The study of money and other assets
• The management of those assets
• Profiling and managing project risks
• As a verb, "to finance" is to provide funds for business.

The activity of finance is the application of a set of techniques that individuals and organizations (entities) use to manage their financial affairs, particularly the differences between income and expenditure and the risks of their investments.

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An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise capital by borrowing or selling equity claims, decreasing its expenses, or increasing its income. The lender can find a borrower, a financial intermediary, such as a bank or buy notes or bonds in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary pockets the difference.

Finance: Examples of some basic financial concepts ►



 

Financial intermediary: In finance, a Financial intermediary is an institution that facilitates the channelling of funds between lenders and borrowers....

Bank: The essential function of a bank is to provide services related to the storing of deposits and the extending of credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services...

Bond market: The bond market refers to people and entities involved in buying and selling of bonds and the quantity and prices of those transactions over time. Participants in the market trade bonds issued by corporations and various government bodies....




Finance related Images and Photos (experimental)

Gaites de la Finance

Lords of Finance The Bankers Who Broke the World (Hardcover) Book

On The Money The New Rules of Personal Finance DVD