Different Areas of Finance

Financial field is a broad term for various things regarding the study, development, and implementation of financial instruments and concepts. One of the key factors in this field is finance engineering or finance science. The study of these fields requires rigorous training, which can be obtained through various universities and colleges. There are many companies and organizations that hire finance graduates to work for them. Financial graduates are most often given an opportunity to get into investment banking, asset management, or business administration.

Assets Management is one of the emerging fields in financial services. This is the branch where financial experts are involved in creating, implementing, monitoring, and evaluating strategies on how to handle, safeguard, and use wealth management issues. This includes financial planning, asset allocation, and financial strategies such as risk-adjusted pricing. The main goal of this branch is to provide information on the various approaches and tools on wealth management.

Another field is Investment Banking. This is where financial institutions provide commercial or secured loans and securities to other financial entities. Financial asset management involves the consolidation, disposition, and positioning of financial assets for optimal returns. The main objective of this sector is to provide stable financial assets to corporate sectors in the long run.

A third branch is Stock Exchange and Currency Markets (FX). This is a part of finance that focuses on financial products such as equities (the trading of securities based on the price of the stock), bonds (a type of financial asset that promises to pay principal and interest at a specified date), and foreign currency exchange. This also includes financial products based on derivatives such as interest rate swaps, forward contracts, and swap agreements. Other types of financial instruments in FX are credit default swaps, credit swaps, interest rate cap agreements, and currency swaps.

Stock Market – Stock exchanges are places wherein shares of different companies are exchanged. This is an important part of financing because companies usually need a lot money to start up and become profitable. The shares are sold to investors by a company’s management in order to raise capital. The main objective of this is to increase the supply of available shares and generate much money in return. It also aims at keeping the supply of the same number of shares between different companies so as to maintain a certain price level.

The banking sector employs branches in many countries. These branches include commercial banks, savings accounts, and self-liquidating banks. Commercial banks are mainly used for large-scale commercial banking including corporate banking, offshore banking, and offshore outsourcing. Savings accounts are mainly used for small-scale banking such as personal banking, credit card banking, and high-street bank accounts.