Categories of Finance

Financial Company3.jpgFinance is a field which is concerned with the allocation of assets and also liabilities within a given time space, it mainly deals with areas where the conditions are risky or there is uncertainty. Finance also is the science of money management. The field of finance can be broken into 3 main categories which include; public finance, corporate finance and also personal finance.

Personal finance is concerned with the following areas; protects against events which are unforeseen, it is also concerned with the inheritance which is the passing of family wealth to the next generation. It is also concerned with the development of a saving plan. Personal finance can also involve the paying for education and also the paying for durable goods which may include cars, real estates and also the insurance. It can also involve paying of the loan or any other debt obligations. The important aspects of personal finance may include; checking the current financial status and also the expected cash flow, the buying of insurance so as to protect against any risk and also personal finance may include the retirement planning. For the best finance company, check out Bonsai Finance or get personal loans online.

Public finance is where the federal government can help to prevent the market not performing by managing the allocation of resources, the distribution of the income across the country and also making sure that the economy is stable thus no negative implications such as inflation. Inflation is the persistent increase in the general price of goods and also services over a period of time. The funding of such activities is mainly done through the taxation. Other organizations which help in financing the federal government include insurance companies, borrowing from the banks, and also other governments. The other sources through which public finance is acquired include charges from ports, airport, fines in courts, revenue acquired from licensing which include driving licenses.

Corporate finance it may be in such a case where businesses can obtain finances through several means which include equity investments and also acquiring credit from banks. An organization can also take a loan from a bank. When a firm acquires a loan or credit and manages it well the firm can expand and also become more profitable, this will help in clearing of the loan. When a firm thrives and decides to go public the company will sell some shares through stock exchange forum. This activity brings a lot of cash into the company. The companies which are already established may decide to sell some other shares or the company might decide to issue corporate bonds so that it can raise the money which is required for expansion. Read more on finance here:

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