What is Finance?
What is Personal Finance?
Personal Finance includes:
- Protection against unforeseen and uncertain personal events
- Transfer of wealth across generations of the family
- Managing taxes and complying with tax policies (tax subsidies or penalties)
- Preparing for retirement
- Preparing for long term expenses or purchases involving a huge amount
- Paying for a loan or debt obligations
- Investment and wealth accumulation goals
What is Corporate Finance?
- Capital budgeting
- Employing standard business valuation techniques or real options valuation
- Identifying the source of funding in the form of equity, shareholders’ funds, creditors, debts
- Determining the utility of unappropriated profits for future investment, operational utilization, or distribution to the shareholders
- Acquisition and investment in stock or other assets
- Identifying relevant objectives, opportunities, and constraints
- Risk management and tax considerations
- Stock issuance while going public and listing on the Stock exchange
What is Public Finance?
- Identifying the expenditure required by the public entity
- The sources of revenue for the public entity
- Determining the budgeting process and source of funds
- Issuing debts for public projects
- Tax management
What Is Microfinance?
- Bank checking and savings account
- Educational programs on the principles of investing
- Training on skills like accounting and bookkeeping including cash flow management, profit and loss statements, etc.
- Basic money management training
- Lessons on financial terms and concepts like interest rate, cash flow, budget, debt, etc.