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Finance is the study and management of money where it involves saving, borrowing, budgeting, investing, lending, and borrowing.
The relationship of money to risk and time is studied in this case hence helps in determining value and making important decisions.
The different types of finance include corporate finance, personal finance, and public finance. Corporate finance involves financial decisions made by corporations where a department is created to oversee financial activities.
It involves managing personal finances to formulate strategies concerned with future needs where these financial activities include spending, investing, generation, saving, and others.
It is the financial activities that affect how the government pays for services it gives to the public where these financial activities include tax, budgeting, and others.
Students study and specialize in finance in colleges for different career options.
This is why finance is broad and has many areas to study. These career options and paths include accounting, auditing, wealth management, commercial banking, insurance, investment banking, financial planning, equity research, personal banking, mortgages, and corporate finance.
The basic concepts learned in the above fields include NPV, internal rate of rate (IRR), capital asset pricing model (CAPM), the future value of an annuity, market value ratios, probability ratios, liquidity ratios, leverage financial ratios, efficiency ratios, and others.
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Here is a list of some important topics in finance that are covered in the colleges and universities:
The above topics and more are important in the field of finance. They involve numerous and tedious calculations that require time to internalize and understand.
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