A world without investment is definitely an imaginary world. One cannot think a single day without trading. Be it your regular purchase of staple food or your account in the stock market, the cash inflow and outflow are continuous in several forms. Finance is thus a world of investments, assets, liabilities, risks, uncertainties and so on.
There are three different categories of finance: Personal, Public and Corporate. Let us have a glance on these.
Tax payment is an everyday affair and none of us can stay away from it. The financial position includes the net worth that the person has after clearing all his liabilities. There could be unforeseen incidents at home such as death, accidents, debt, theft and so on. One must have a strong financial position to deal with these situations as well. The retirement planning should also be done in such a way that you have enough funds for your survival. There are certain taxation norms which all citizens must follow. You can consider your savings once you make the tax payment.
Corporate Finance: :
It majorly deals with source of funding, the investments to be made, capital structures of the corporates and so on. Capital budgeting involves which project to be considered for investment. All the pros and cons have to be analysed. Once the project is decided, the source of investment has to be figured out as well. If it is a big money, the funding has to be considered. The business evaluation and investments play a major role in corporate finance. If you are planning for stock investment, you need to think, which sector you want to choose, the amount of money that you want to invest, the volatility of the market and so on. There are several agencies and firms that strictly hires expert stock managers to assist the public to make better profits.
Public Finance: :
This sector mainly deals with monetary transactions related to state, economy, province, municipal and schools etc. The Government authorities are accountable for every penny that they spend. Hence, this sector requires more planning, approval and budgeting.
Thus, finance is one sector which is always dynamic. If you are good at calculations and can predict the market, there are several sectors that you can choose in this field. But, you got to be proactive and be very careful with every move. This can only assure you expected outcomes. Else, seeking expert opinions would also help.