finance

Finance is the study and management of money, markets, and institutions. It concerns how individuals, firms, and governments acquire, allocate, and use financial resources to achieve objectives such as consumption, investment, and risk management. Core concepts include the time value of money, risk and return, diversification, and liquidity, as well as the flow of funds through various channels in the economy.

Major subfields include personal finance, which covers budgeting, saving, retirement planning, and debt management; corporate finance, which deals with capital budgeting, funding decisions, and capital structure; and public or governmental finance, which focuses on budgeting, taxation, and public debt. The field also encompasses financial markets, instruments, and institutions that support the transfer and allocation of capital.

Financial markets enable raising capital and transferring risk through instruments such as stocks, bonds, derivatives, and currencies. Financial intermediaries, including banks, insurance companies, asset managers, and pension funds, provide liquidity, credit, and risk pooling. Institutions and infrastructures, such as exchanges, custodians, and clearinghouses, underpin market efficiency and trust.

Regulation and policy play a central role, with monetary policy conducted by central banks and financial regulation supervised by securities, banking, and antitrust authorities. The aim is to ensure stability, transparency, and consumer protection, while supporting economic growth. Global finance addresses cross-border capital flows, exchange rates, and balance of payments, and contemporary issues include fintech, financial inclusion, risk management, and sustainable investing.