Finance describes the act of providing money, capital or other financial resources to assist in facilitating a loan or a sale. This term is commonly used within the financial industry, which includes areas such as banking and accounting. Individual careers that help comprise the financial industry include a financial adviser or analyst, a bond broker, a portfolio manager, an investment banker and a stockbroker.
Individuals planning a financial career often major in subjects such as economics, accounting and business law. Within such majors, university students learn about the various facets of personal, government and corporate finance. An example of courses supporting such an education include business management classes, statistics classes, various economics courses, and courses which instruct students on the inner workings of different private and government monetary institutions, as well as their policies.
Businesses hoping to raise financial capital often seek the assistance of individuals trained to work in finance in order to secure the resources needed to start or grow a business. Attorneys specializing in certain financial genres, as well as other real estate professionals, accountants and business analysts, may also be called upon to assure that capital strategy is both strong and effective. Within the world of finance, professionals routinely work together to create and manage strong investment opportunities.
In terms of its global application, there are three primary areas of finance. These areas are investments, financial management, and financial markets and institutions. While these three areas frequently overlap with one another, employment opportunities within each are more distinct.
Individuals working in investment sectors tend to work more in direct sales transactions, financial planning or analysis of various securities. Individuals working in financial management may also focus on planning and security analysis, but tend to also work more specifically with an individual company or group and often tend to focus more on overseeing the group’s working capital. Those working in money markets and other institutions generally focus on providing liquidity and capital to large banking and financial institutions.
Specific laws pertaining to finance vary among countries and may even vary within smaller jurisdictions. Most governments, however, strictly monitor financial transactions to protect individuals, businesses and institutions from incidents of fraud or other potential hazards. Individuals trained in finance are also trained according to these laws and, in many instances, must obtain special license to work in financial sectors after undergoing a thorough examination process.