Finance is the area of the economy that studies the functioning of the money and capital markets, the institutions Kreditus that operate in them, the policies for attracting resources, the value of money over time and the cost of capital.
Types of Finance
Depending on the area of specialization within Finance, we can talk about three types:
1- Public Finance
Public Finance constitutes the economic activity of the public sector, with its particular and characteristic structure that coexists with the market economy, from which it obtains the resources and to which it provides a framework for action.
It includes the assets, rents, and debts that form the assets and liabilities of the Nation and all other assets and rents whose administration corresponds to the National Power through the different institutions created by the state for that purpose. In order to perform its functions and face its public needs, the State must-have resources, and they are obtained through the different procedures legally established and prescribed in constitutional legal principles.
Public finance establishes; study the needs; create resources; Income; Expenses, The state uses the necessary resources from its political management to develop financial activities through the exploitation and distribution of wealth to meet public needs (individual and collective).
Create the appropriate platform in terms of education, health, social security, for the development of new sources of work, create their own technology, within the framework of a pluralistic and flexible decision-making system, which articulates different mechanisms for shaping the will collective Ensure greater social control over its management, improve the means and instruments that exist today of political and social representation and establish other ways of participation complementary to those of political representation, which strengthen, decentralize its power and transfer responsibilities and resources to state communities and local and finally improve their political structures.
Develop concurrent action strategies and propel these actions aimed at protection, the development of citizen security, health, education, sports, culture, work, and finally, social welfare, so that the economy of the country can develop and lead it towards a prosperous future. Fiscal policy as an instrument of stabilization and adjustment; Heterodox and orthodox (traditional and non-traditional) public finance policies.
2 – Business Finance
They are those that focus on the monetary or investment decisions that companies make (identification of investment opportunities and analysis of their economic viability, usually, in terms of profitability) and on the tools and analysis used to make those decisions.
The fundamental objective of business finance is to maximize the value of the company for its shareholders.
3- Personal finances
They are related to the ability to generate savings by individuals, as well as to obtain additional financial resources from, for example, financial institutions to cover their investment needs. In addition, they also include the investment decisions of the surplus of available financial resources.
Saad Mushtaq was born and raised in the busy city of Abbottabad. As a journalist, Saad Mushtaq has contributed to many online publications including the PAK Today and the Huffing Post. In regards to academics, Saad Mushtaq earned a degree in business from the Abbottabad UST, Havelian. Saad Mushtaq follows the money and covers all aspects of emerging tech here at The Hear Up.Thanks
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Umar Nisar was born and raised in the busy city of Abbottabad. As a journalist, Umar Nisar has contributed to many online publications including PAK Today and the Huffing Post. In regards to academics, Umar Nisar earned a degree in business from the Abbottabad UST, Havelian. Umar Nisar follows the money and covers all aspects of emerging tech here at The Hear Up.