If we observe the origin of finance, there is enough evidence to prove that it is as old as human life on the earth. The word finance was initially a French word. However, in the 18th century, English speaking communities started using it for money management tasks. Today, finance is not merely a word but has emerged as an academic discipline of huge significance. Nowadays, it is even considered as a branch of Economics. Also, several students choose this subject for their major studies. While reading this article, you will surely learn some deeper concepts compiled by our dissertation help experts.
What does the term mean?
In an easy to understand explanation, we can say that finance is nothing but an exchange of available resources. Moreover, it is an art of managing money, investments, assets, securities and other valuables that can be easily converted into cash.
Also, the term is often used by our finance dissertation help experts for defining a task of asking any financial institution or another person to lend you money that you need to repay at some point in the future.
What are its types?
Since individuals, businesses, and even the government need funding to operate, this field is often divided into four main sub-categories: personal finance, corporate finance, public finance, and social finance.
It includes all the financial decisions and activities of an individual or household, such as the practices of earning, saving, investing, and spending. Moreover, personal finance also includes the purchasing of financial products, like credit cards, life, home insurance, mortgages, etc. Banking is also considered as one of the parts of personal finance, including checking as well as savings accounts and the online payment services like PayPal and Venmo.
Corporate finance consists of the financial activities related to an organization. It is mainly concerned with maximizing shareholder value through various financial plannings and the implementation of different strategies for the same. Everything from capital investment decisions to investment banking falls under this category.
It includes tax, spending, budgeting and debt policies. In short, all the funds that are related to the government are counted under the domain of public finance. The federal government helps prevent market failure by supervising the allocation of resources. Regular funding is often secured through taxation. In addition to managing money for its day-to-day operations, a government body has other social responsibilities as well. Its goals include attaining an equitable distribution of income for its citizens and building a stable economy.
Social finance typically refers to investments made in social enterprises including charitable organizations and cooperatives. Rather than a direct donation, these investments are debt financing, in which the investor seeks both a social gain as well as a financial reward.
Do you know these amazing finance facts?
Besides the subjective information, we have mentioned some unknown facts about finance that you might not have known yet. Scroll ahead and let yourself float as these facts flow!
- Throughout the history, people have used many forms of money, such as elephant tail hair, soap, cocoa beans, grain, animal skins, fishhooks, feathers, tea tobacco, bird claws, elephants, and bear teeth.
- Britain spends less on investments when compared to any other G7 economy. In 2013, the UK spent 15% of GDP on investment that remained behind other G7 economies such as Germany and Italy with 17%. In comparison, France spent 25% of their GDP on investments.
- The Romans were the first to stamp the image of a living person on a coin. After winning in war, Julius Caesar featured his portrait on a coin in 44 B.C.
- The word “bankrupt” is derived from the Italian word ‘banca rotta,’ that means “broken bench.” In the early years of banking, people did their entire business in public marketplaces at benches. And, If the man at the bench ran out of money or was unfair, then his bench would be broken.
- Early Romans used salt as a form of money. In fact, the word “salary” has been derived from sal, which means “salt” in Latin.
- If all the gold discovered in the world assembled together, then it would be a cube between 62 feet and 82 feet along each side, approximately about the size of a tennis court.
- The world’s first bank was Monte Dei Paschi di Siena, founded in 1472 and headquartered in Tuscany, Italy. It operates even today.
Hope you learned a few more things about Finance. Stay tuned to our blogs section for more such interesting updates!