Finance is a broad term used broadly to describe things about the science, development, and managing of funds and assets. In particular, it concerns the questions of why and how an individual, institution or government obtained the money necessary to operate their activities and how they use or distribute that money. More specifically, it covers the whole range of financial activities such as personal and corporate saving, investment, borrowing, lending, spending, and supervision of those activities. All of these things require the acquisition and maintenance of certain capital items such as fixed assets, negotiable instruments (such as currency and securities), short-term financing, and long-term financing.
There are many aspects of finance that are considered to be part of the broader field of financial science. Some of these include the financial accountancy, management and control of financial resources, management and policy research, and also the measurement and evaluation of these resources. The scope of finance is constantly changing and advancing as a result of ever-changing factors such as economics, technology, and society at large. While some of these developments may seem to be static or unchanging, the evolution of finance has actually occurred over centuries with significant changes and advancements occurring on a day-to-day basis.
As important, therefore, is the role of finance in determining the size and shape of banks, financial institutions, savings and loans, corporations, and other institutions as well as the level of consumer credit extended to individuals. It also determines governmental policies such as tax rates, budgeting, deficits, monetary policy, and interest rates. In addition, the conduct of monetary and banking transactions, including interbank and cross-bank transactions, influences the level of global currency traded, interest rates, and money management policies.
Finance can be used by any person, institution, or group of people to take an investment decision, purchase a commodity, enter into a contract, purchase real estate, or borrow money. There are numerous areas of financial activities. For example, corporate finance refers to the strategies and methods that companies use to acquire, manage, sell, and lend money and other financial assets. Corporate finance therefore includes the borrowing and lending practices of companies such as commercial banks, hedge funds, private lenders, and proprietary financial institutions. Other types of financial services related to banking include commercial insurance, bank deposits, banking supervision, mortgage banking, corporate banking, and the financing of pension and retirement plans.
Finance jobs are available in almost every field of industry. An increasing number of financial analysts specialize in one particular aspect of the financial services field. Financial analysts are required to develop financial plans using models based on mathematical formulas. To qualify for a position in this profession, an individual must possess certain skills such as problem solving skills, analytical and research skills, mathematics skills, interpersonal skills, and ability to follow and organize information. These qualities make the financial analyst a valuable member of the finance industry.
A finance job can be a rewarding career for those who possess a balanced blend of technical skills, creative thinking, and business acumen. Finance is an ever-changing discipline requiring both innovativeness and practicality. As globalization and technological advances continue to impact the global economy, finance graduates need to have a broad range of skills that they can apply to a wide variety of finance positions. Graduates who have completed an appropriate degree program in finance can find work in various industries such as banking, insurance, investment, retail, and securities firms. In addition, finance professionals can choose to work in government or nonprofit organizations. Whatever the chosen career path, financial management professionals will be well rewarded for their efforts.