Finance can be interpreted as financial management. For the broader sense, Finance is the overall activity includes the management, marketing and management of cash. Finance study how individuals, businesses, and organizations raise, allocate and use monetary resources over time, and also calculate the risk in carrying out their projects.

Financial terms can mean:

  • Financial knowledge and other assets.
  • The asset management.
  • Calculate and manage project risks.

Finance History

We generally dates the beginning of modern finance, as a field of study and research in 1958. It is from this period that the discipline has become a subdiscipline of economics, by borrowing his reasoning formalized and its optimization mechanisms. Previously, financial management was essentially a collection of practices.

Finance has become a widely nowadays trading instruments and transfer of income expectations and risks which prices can be traded on markets or with financial institutions. Risks in particular can be so transferred to those willing to take them (against the expected income), and financial intermediaries can perform an inverse risk compensation (for example, currency risk of an importer is opposite to that of an exporter, the risk rate a lender is opposite to that of a borrower, ...), risk diversification, etc.

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