Finance is a field that deals with the study of investments. It includes the dynamics of assets and liabilities, (known as elements of the balance statement) over time under conditions of different degrees of uncertainties and risks. this can also be defined as the science of money management. Market participants aim to price assets based on their risk level, fundamental value, and their expected rate of return. it can be broken into three sub-categories: public, corporate and personal finance.
Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance, e.g. health and property insurance, investing and saving for retirement.
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Personal finance may also involve paying for a loan, or debt obligations. The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are
Corporate finance deals with the sources funding and the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.