Finance is defined as the management of money and investments for public purposes, companies, and even governments. The global economic system has the largest amount of finance ever known in history. The business world in particular has had a huge effect on finance over the course of history. The main areas in which businesses have had a significant effect on the finances are retail, corporate, investment, and banking.
The study of finance is broken down into three different areas within modern society. The first area is that of the financial system itself. Within this field are all the banks, financial institutions, money markets, central banks, etc., which collectively form the financial system. Within this area also is the second area, which is that of the economy. In the study of economics capital is defined as anything that can be converted to cash.
Within this area are all of the tools, capital equipment, labor, machines, etc., that are required to run a civilization. Capital in this way is not only used to create and grow wealth, but it is also used to create jobs, provide for social needs, education, infrastructure, research and development, and a variety of other uses. Many people think of finance as something that affects them directly through their bank accounts, but in truth finance impacts us all in subtle ways. It is important to remember that finance is an overall concept that is expressed in many different forms, including government finance, private finance, business finance, economics capital, banking, mergers and acquisitions, ownership, investment, franchises, partnerships, acquisitions, sales, price action, supply chain management, technology, risk, inflation, international trade, and foreign exchange rate fluctuations. As a whole, finance affects every aspect of human activity.