What Is Finance Full Detail
βFinanceβ is taken from French language. Which means finance. The capital we need for any work, production, running the company and running the company system is called finance.
Nowadays, we all must have seen big companies and wondered how these companies are run and how work is done in these companies. Then we tell you that finance is required to run these companies.
Now let us think what is βFinanceβ. Finance is a system in which accounts, sales, purchases and expenses of the company are seen.
The growth of the company is seen in which finance is needed. Finance is an art in which money is managed and maintained.
What Is Finance Full Detail
.
Related more article β Finance | Definition, Types, & Facts
.
In this blog we will give you information about what is finance, how many types of finance are there, what is finance, types of finance, benefits of finance etc.
The meaning of all these becomes different in the government.
What Is Finance Full Detail
Now let us first talk about what is personal finance.
1 Personal Finance
Personal finance deals with planning and investing for individuals.
2 Corporate Finance
It includes information related to the financial management of business entities or companies.
3 Public Finance
Deals with the finances of government institutions, such as budgeting, taxation, and other government financial processes.
What Is Finance Full Detail
What are the benefits of finance?
1 If you want to do any kind of business and if you have knowledge of finance, then you can reduce the losses of your company drastically and make the company profitable as soon as possible.
2 If you have knowledge of finance then you will be able to easily take loan from any bank or any private institution and you will be able to repay that loan easily because in finance you become a mathematician.
3 If you have knowledge of finance then it will help you a lot in how you can take your business forward in future. 4 If you want to do any kind of business and if you have knowledge of finance, then you can reduce the losses of your company drastically and make the company profitable as soon as possible. key finance terms
What Is Finance Full Detail
Key finance terms
These are some of the key finance terms you should be familiar with.
Balance Sheet: A balance sheet is a document that shows a companyβs assets and its liabilities. Subtract liabilities from assets to get the firmβs net worth.
Profit: Profit is the money left after expenses. The profit and loss statement shows how much a business has earned or lost for a particular period.
What Is Finance Full Detail
history of finance
1 Finance, as the study of theory and practice distinct from the field of economics, was developed in the 1940s and 1950s by Harry Markowitz, William F. Sharp emerged along with some of the acts like Fisher Black and Myron Scoles.
2 Special areas of finance β such as banking, lending, and investing and, of course, money itself β have existed in some form or another since the beginning of civilization.
3 The financial transactions of the early Sumerians were formalized by the Babylonians of Hammurabi (about 1800 BC). This set of rules regulated the ownership or rental of land, the employment of agricultural workers, and credit.
4 The United States also began issuing treasury bonds to support the Revolutionary War.
5 By 1200 BC, cowries were used as money in China. Coin currency came into use in the first millennium BC.
6 In ancient Rome, coins were stored in the basements of temples because the priests or temple staff were considered the most honest, pious, and safest for the protection of property.
What Is Finance Full Detail
Initial Stocks, Bonds and Options
Belgium claims to be the home of the first exchange, with the exchange in Antwerp taking place in 1531.
7 During the 16th century, the East India Company became the first publicly traded company as it issued stock and paid dividends on the income it received from its voyages.
8 The London Stock Exchange was created in 1773 and the New York Stock Exchange was created less than 20 years later.
9 The earliest recorded bond dates back to 2400 BC, in the form of a stone tablet that recorded debt obligations that guaranteed repayment of grain.
10 During the Middle Ages, governments began issuing debt to finance war efforts. In the 17th century, the Bank of England was established to finance the British Navy.
What Is Finance Full Detail
Read more >>
