Publisher's Synopsis
Finance - the art and science of securing money or other assets to cover costs. Borrowing or selling equity is a common way for individuals, corporations, and governments to get the capital they need to make purchases, make debt payments, and carry out other necessary transactions. When spenders spend their money, savers and investors stockpile it in the hopes of earning a return on their investment through interest or dividends. Investment capital can be generated when accumulated savings are lent out at interest or invested in equity shares. These savings can take the form of bank deposits, shares in a savings and loan, or payouts from a pension or insurance policy. Finance refers to the practise of allocating these resources (whether in the form of credit, loans, or invested capital) to businesses and organizations that can make the most use of them. Financial intermediaries are the businesses that act as conduits for the flow of money between savers and spenders. Financial institutions encompass the likes of commercial banks, savings banks, savings and loan organizations, and nonbanking entities including credit unions, insurance firms, pension funds, investment firms, and financing corporations.
Business finance, personal finance, and public finance are the three major subfields of finance, and each has its own unique institutions, procedures, standards, and aims. In industrialized countries, the requirements of various spheres, both collectively and individually, are met by a complex system of financial markets and institutions.
