Finance is a field, which deals with the money transactions like accounting, which depends on time and certainties. The main thing that should be focused in finance is time value of money. Based on the share market rates the value of money will also be fluctuating. Finance can be divided into three categories they are,
Public finance
Corporate finance
Personal finance
MpneyPublic finance deals with the government revenue and government expenditure of public authorities, which avoid undesirable ones. To make the money double the resources will be efficiently allocated the income will be distributed for increasing and stabilizing economy.
Corporate finance deals with the sources of funding and capital structure of action which increase the value of firm to stake holders used to allocate financial resources. The main aim of corporate is to increase the shareholder value.
Personal finance deals with the financial management for an individual or family unit to save and spend monetary resources over time. It includes banking products like checking, savings, credit cards and consumer loans, investment includes stock market, bonds and mutual funds, insurance includes life insurance, health insurance and disability insurance.
Two main sources of finance are Equity financing is the money invested in business for its share and Debt financing is type of loan in which the principal amount is borrowed and interest is paid. The source of Equity financing includes personal savings, friends, relatives and venture capital. In Debt financing for more opportunities to be secure are leasing, term loans, credit cards, bank overdrafts, commercial bills, loan programs, trade credits.
For a business, investment is essential factor to make more profit more initial capital amount must be invested. Public companies and municipalities use capital for operations and banks lend it to various companies to purchase of goods and services.
Laws related to financial services
Numerous laws or acts have been passed on finance and financial services among which act concerning structural improvement of the financial industry is one of the most effective acts. The purpose of this act is to balance the financial wealth of the industry. This includes many regulations related to this law and they are
Getting authorization of the merger
Conversions of financial institutions
Recommendation of the receiver for bankruptcy
Management of the reform order
Managing the trouble institutions
The banking act related to the enhanced protection for consumers of the financial services. This will help to follow the strict regulations or rules like authorizations for banking business, holding the financial limits or the business limits, banking operations, closure and disclosure policy and more. There are so many things you need to know for maintaining the finance in a company. To be out of all these troubles you can take a quick solution that is to hire an attorney who will be able to tackle all the financial problems. They know the acts and regulations passed on the financial sectors so that they will help you to be cautious and make you stay safe.
