fjármál

Fjármál is the field that studies and practices the management of money, assets and liabilities. It encompasses decisions about acquiring and allocating resources, funding operations, investing capital, and managing risk. The discipline applies to individuals, firms and governments and is typically divided into personal finance, corporate finance, and public finance.

Personal finance covers budgeting, saving, debt management, insurance, retirement planning and tax considerations. It focuses on optimizing the timing and composition of expenditures and the growth of wealth over the life cycle.

Corporate finance addresses how companies raise capital, decide on investments, manage working capital, determine capital structure, and assess risks. Tools include financial analysis, valuation, capital budgeting, and corporate governance.

Public finance deals with government revenue and expenditure, taxation, budgeting, debt management, and the role of fiscal policy in stabilizing the economy. It covers how resources are allocated across sectors and generations and how policy choices influence growth and resilience.

Financial markets and institutions enable the flow of funds. Banks, investment firms, insurance companies and pension funds intermediate between savers and borrowers; stock and bond markets provide pricing and liquidity; derivatives help manage risk.

Regulation and practice shape fjármál through accounting standards, auditing, and oversight. Central banks influence monetary conditions, control interest rates, and promote financial stability; securities regulators enforce market rules; accounting and auditing standards ensure transparency and comparability of financial information.

In Icelandic usage, fjármál broadly covers both practical management of money and the study of financial systems, including personal financial literacy, corporate governance, and public budgeting.