In practice, risks are always present in any financial action and entities.Ī broad range of subfields within finance exists due to its wide scope. Assets can also be banked, invested, and insured to maximize value and minimize loss. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. It is related to, but not synonymous with economics, which is the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two).įinance activities take place in financial systems at various scopes thus, the field can be roughly divided into personal, corporate, and public finance. Finance is the study and discipline of money, currency and capital assets.
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