Question

What is the Finance

Answer 1

"Finance" word is concerned with providing something on the credit. In simple words, you can say as management of money.

For example, you need money to buy your home, then the bank provides the lends the money to you and you can buy the home using this money. In the future, you will need to pay the amount of periodic installment payment of loan.  

Finance can be different types such as personal finance or corporate finance. The above example is classified as personal finance.

Let's take an example of corporate finance. If the company needs to buy the equipment and land to expand their business. The company can be issued either bonds or common stock, or preferred stock. However, the company sometimes tries to borrow money from banks or financial institutions.

Further finance can be classified into different activities, such as borrowing, investing, saving, and lending.