What Is Finance?

Finance-this term does not apply to the definition of management, investment and creation of funds. In general , finance can be divided into three categories::

Public finances
Corporate Finance
Private finance

Many other features of the category are that behavior as financial, and behavior as cognitive (for example, emotional, psychological and social) behavior underlies financial decisions.

The main conclusion

Finance is a broad study of the meaning of this term, the description and application of financial instruments, including investment and other financial instruments.
Finance in general can be divided into three categories: Finance public, corporate, private and Finance faculty.
The social order includes the latest financial and financial subcategories.
The history of the emergence of civilization and the current state of financial activity. Interest-bearing bank loans and 3000 BC was still. Now at the mint around 1000 BC, the coin was in circulation.
Although he covers all scientific fields, including not only statistics, economics and mathematics, but also financial and scientific elements, where he compares with art.

Financial Understanding

“Finance” in a broad sense is divided into three: taxes included by the state financial system, public expenditures, budget procedure, instruments and policy of stabilization, issues and other obligations of the state in relation to the financial system. Corporate finance management includes assets, liabilities, profitable and business. The personal finances of a household are in a financial position and are defined as all finance, budget creation, mortgage insurance and planning, retirement funds and planning.

Finance history

As a theory and practice of studying financial economics in a field that is different from the 1940s and 1950s, most of them work with Markowitz, Toba, Sharp, Trainor, Blackie and Scholes, and some of them are alive. But not all financial and banking works, investment loans and, of course, the most civilized appearance lives in one form or another.

Since about 3000 BC, banking, apparently, existed even before the birth of the Babylonian-Sumerian Empire, where a temple-a building made of grain, silver or copper castings and horned bows – was recognized as a safe place to use and store their financial assets. At the same time, it remains important how convenient the grain is for sending abroad

The Sumerians officially introduced into the Code of Financial Transactions the period of Hammurabi and Babylon (about 1800 BC). The lease of land plots, or the regulatory procedure of these rules related to agricultural lending services. Yes, then there is a borrower, and yes, interest rates are calculated on it, depending on whether you can borrow before or without.

Apparently, the quality of the water used by Kauri Aksak was in China around 1200 BC. The minting of the first thousand coins began before our era was carried out for the first time. The Lydian king Croesus (now Turkey) was one of the first to put into circulation a gold-plated coin.around 564 BC — since then the word “rich as Croesus”.

Primary stocks, bonds and options

6th century BC. e. t. the ancient Greeks counted money on six different types of loans; about 48% gave loans up to 10%.There is also 1 option contract. According to Aristotle, it was olives Thales who used the right to buy books, because he was a great success with the public. (He was right.)

A bill of exchange as a means of payment was a means of payment, and since the beginning of the Middle Ages, people have transported large amounts of money from one precious metal to another over long distances.1 merchants, bankers and merchants of the 13th century acquired European and foreign currencies in a large trading center of their use, like Genoa and Flanders.

Previously, he was engaged in options trading, first engaged in stock exchanges in 1460; after that, he traded bonds and futures contracts, was founded in 1483. Amsterdam moved into the movement at the beginning of the 17th century. In 1602, the first VOC company (Oost Vereenigde-Compagnie Unites or Indische East India Company) was established, which issued shares that were always to buy – on the Amsterdam Stock Exchange had just been established on the stock market during the First World.

Achievements in the field of accounting

Compound interest — he thinks that his debt is not equal to the principal amount, but an additional percentage is to be known to an ancient civilization (the phrase “interest on loans” is the basis of the concept). However, it was only in the Middle Ages that he prepared an extensive set of mathematical analyses for his needs: the first manuscript and one of the most important sources of arithmetic, including Leonardo Fibonacci’s work written in 1202, known as Abaci liber, allows us to give a relatively complex example with simple quantities.

Treatises on Comprehensive Accounting, “Sum arithmetic, Geometry, Proportionality and” Luca Pacioli, first published in Venice in 1494. William Colson (English) is a book on arithmetic and accounting, written by him in 1612 and is the most complex of the early mathematical tables. Richard Wheat solved the arithmetic problems first published in London in 1613, and the difficult question was finally solved.

At the end of the 17th century, he teamed up with England and established in the Netherlands to establish the world’s first age-related annuity.

Public finances

The Federal Government controls its prevention in the markets and the distribution of resources, the distribution of income to stabilize the economy. This is provided by taxes, which will be financed on an ongoing basis.4 acquisition of a bank, insurance company and other financial assistance, as well as dividends provided by the federal government and the government.

Thanks to the support of federal government agencies and local Government grants. The fee for using these sources of financing includes other ports, airport services and other facilities that were created as a result of violation of state law; collection of income and license fees, including driving cars; issuance and sale of securities, bonds and so on.

Corporate Finance

Financing of the activities will begin with the completion of enterprises, equity and investment loan agreements. The credit line can be attracted by the creator of the company or as a loan. The right way to buy a company can help expand and realize your needs and profits.

Is the investor a venture capital and a well-known startup? in exchange for it, it was possible to get the plots of the capitalist angelic. If a company becomes open and thriving to issue shares on the stock exchange; a public offering, like an initial (ipo googl), the firm brings in a lot of money. A corporate investor buys company shares to raise additional funds for construction or bond issuance. Purchase of shares of enterprises, payment of dividends, blue ishkov bonds certificate or interest on bank deposits (CD); they can also be bought in order to increase the income of other companies.

For example, reports of net profit for the second quarter amounted to $ 12.3 million for the gannett publishing company in July 2016, which is 77% less than last year, $ 53.3 million. But due to the announcement of the 2015 purchase of media group from jersey media group gannett journal north, the circulation is much larger and total revenue for 2016 led to an increase of 3% to $748.8 million in the second quarter.

Private Finance

The analysis of the financial situation of each person or individual family includes the person’s current financial performance and financial needs within the framework of meeting personal needs and meeting them within the short- and long-term constraints of the plan. Personal money A lot of finance depends on you, what life needs want, as well as personal goals.

Personal finance includes, but is not limited to, personal financial reasons: credit card purchases; life and housing insurance; mortgages; pensions and groceries. Personal banking transactions (such as savings and mortgage accounts, 401 plans, and IRA(k)) are also part of private finance.

The most important aspects of your private finances:

  • Assessment of the state of your current finances: cash flow, current flow of money, etc. B.
  • Provider of financial situation and storage of the insured event
  • Reporting and taxation
  • Money and investments
  • Retirement planning

As a specialty in the field of personal finance has emerged recently, they have been a school form as universities of “home economics” or “consumer economics” since the 20th century. In this area, the economist ignores men, because “home economics” seems to be a housewife prerogative. Economic indicators of macroeconomics have recently emphasized several times that the study of financial problems at the modern level is an integral part of the entire national economy.

Social financing

As a rule, the financing of social investments is the implementation of social enterprises, including a number of cooperatives and charitable organizations. Contributions of the fund’s direct investment obligations instead of accepting these forms of financing, and investors will seek financial, social and benefits.

The Bottom Line

Finance is a broad term that describes various types of activities. But all of them are mainly taken to the practice of money management, and all of their expenses as they come out of mastering investments. Along with the activities, consideration of financial and instruments, as well as instruments, funds and services applied to them, is also carried out by the Institute of the Water System, whose activities are carried out thanks to it.

This may include things like a large, large country deficit, as well as small ones or those with strong bills. But there is little that he could do: household, corporation, and society.