Finance is the study of managing money, investments, and other financial instruments to achieve personal or organizational objectives. It focuses on how individuals, businesses, and governments acquire and allocate financial resources over time, under conditions of risk or uncertainty. Finance is often divided into three main areas: Personal Finance, which deals with managing personal budgets, savings, investments, and loans; Corporate Finance, which focuses on how companies raise capital, invest in assets, manage risks, and maximize shareholder value; and Public Finance, which involves government budgeting, taxation, and expenditures. Within these areas, financial professionals analyze markets, manage portfolios, and assess the value of assets and investments. A key component of finance is understanding the time value of money, risk management, and the trade-offs between risk and return. Financial markets, such as stock exchanges and bond markets, are essential mechanisms for transferring funds from savers to borrowers.
