InvestorQ : What is finance and its types?
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What is finance and its types?

Answer
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Abigail Ghoshal answered.
7 months ago


Finance is basically defined as the management of money and includes various activities such as investing, borrowing, lending, forecasting, budgeting, and savings. There are three main types of finance:

1. Personal finance: This type of finance is all about managing one’s own income and expenses and saving and investing out of their own earned money. This is something that every individual does at one or another stage of their life. For example – how much you earn and then to decide the necessary expenses, after deducting those expenses one needs to decide about what is to be done with the remaining money, whether to invest or to keep it idle. In wider terms, personal finance means managing your finance in the most beneficial manner.

2.Corporate finance: This is the type of finance that deals with financial and investment decisions. It majorly deals with increasing the wealth of shareholders through financial planning, be it long-term or short-term. The decisions under corporate financing range from capital investment decisions (sources of finance) to investment banking.

3. Public/ Government: This finance is deliberate manipulation of revenues and expenditures of the government. Basically, it is the financial plan of the government. It is the management of the finance of a country’s finance.