Finance is a broad term used to describe various matters concerning the study, creation, management and distribution of money and other financial investments. In particular, it deals specifically with questions of how money is acquired by a business, organization or government and how they use or dispose of that money called capital within the business context. There are different theories on the subject of finance, which have been evolved over the course of time. These theories include Pigouvian theory, the theory of adverse credit and theory of relative liquidity. All of these theories have strong roots in classical economics.
The study of finance can be broadly categorized into two main areas which are personal finance and corporate finance. The study of personal finance mainly refers to the field of making loans and buying goods and services and using them to satisfy our needs and wants. On the other hand, the study of corporate finance mainly refers to the area of buying shares and property and using them to make investments and make profits.
One important area of personal finance is that of making loans and buying shares through banks and lending institutions. Many people have the misconception that if you want to raise capital, you must go to a bank. This is not always the case as there are many alternatives to banks such as investment banks and preferred stock funds which can be used to raise capital for any business or organization. Also, corporate bonds and preferred stock funds are great ways to raise capital and are highly recommended if you want to raise capital quickly.