Who uses Finance?

Finance has one main goal and that is to create wealth. The field of finance refers to the concepts of time, money and risk and how they are interrelated. Finance is used both in our personal lives as well as in the business world.

In the financial market, finance is used for many decision involved in the bond market, Stock (Equities) Market, Forex market, Derivatives market, Commodity market, Money market, Spot (cash) Market, OTC market, Real Estate market, and Market participants.

 Investors who use finance include Speculators, Institutional Investors, as well as those who work in Corporate finance.

Another field of finance includes Structured finance. Activities involved with structured finance include Capital budgeting, Financial risk management, Mergers and Acquisitions, Accounting, Financial Statements, Auditing, Credit rating agency, and of course, Personal finance.

Speaking of personal finance, there is a lot more involved to public finance then just credit cards and putting your money in a bank for interest. Fields of finance that the average person should know about are called personal finance and they include Employment contract, Retirement, and Financial planning. Personal finance is also known as Public finance and public finance firms are a growing part of our lives as people continue become aware of the need to be financially sound not just now, but in the future as well.

Of course, Tax and Banking are also a large part of finance, though there is a fine line between what is finance and what is accounting. Generally, accounting is the recording of figures while finance is more involved with making decisions with the figures we are given.

Scholars of Finance are always trying predicting the next stock market bubble, recession, and stock market crash. Investors especially are meant to pay special attention to things that are unusual in the market, an example is the internet bubble. Stocks for internet companies were being sold for such a high price to earnings ratio (P/E) compared to other stocks and it was predicted that the bubble would eventually burst and in 2001 it did. Most of those who were educated in finance realized this and stayed away while others jumped on board and lost millions. These are just a few reasons why finance is such an important part of business that it is today and knowing finance can help you do anything from land a high paying job to investing your own money and making it work for you.