Academic discipline studying businesses and investments
Finance is the study of money and how it is used. Specifically, it deals with the questions of how an individual, company or government acquires the money needed – called capital in the company context – and how they then spend or invest that money.
Core financial theories can largely be divided into the following categories: financial economics, mathematical finance and valuation.
In the context of institutions, finance is often split into the following major categories: investment management, corporate finance, personal finance and public finance.
At the same time, finance is about the overall “system”
– i.e. the financial markets that allow the flow of money, via investments and other financial instruments, between and within these areas;
this “flow” is facilitated by the financial services sector.
A major focus within finance is