Category Archives: Finance

Finance is a branch of economics that deals with money matters.  In layman’s terminology, finance can be understood as the management of money. However, technically speaking, finance entails the very action of allowances, assortments, issuance, budgeting, saving, allocation, administration, and sharing, etc., of assets and liabilities, individually or through an organization. Finance is classified into three categories, i.e., the public or government sector finance, corporate sector finance, and personal finance.

Many of the financial theories are based purely on macro and micro-economics. Microeconomics deals with the finances concerning small entities, whereas macroeconomics pertains to the nation’s economy and budget as a whole. Basic yet fundamental theory in finance is the value of money in the given time period. It is opined that a penny today is worth more than a penny tomorrow.

Capital is an important area of finance. It refers to the wealth in the form of liquid cash or movable and immovable assets owned by a company, an organization or an individual, used to initiate an investment for personal and professional gains. There are three types of financial capital primarily, they are – equity capital, debt capital, and specialty capital.