Finance is the study of money and how it can be used to build wealth and profit. It covers a wide spectrum of investment opportunities such as purchasing a home or a land, investing in a business idea, or buying stocks or financial instruments. The rate of return that these investments can yield varies according to the economic circumstances in which they’re made.
Finance is an important part of an economy, and it enables a business to grow and generate money for shareholders. This is done by diverting funds from surplus funds and spending it on new ventures. The purpose of a business is to maximize profit and maximize earnings, and this means making sound financial decisions. A business’s goal is to make money for its shareholders, and the stock price reflects its value.
