Finance is a broad term encompassing all things related to the production, management and distribution of investments and money. Individuals, businesses and the government can invest money to earn returns. A company can buy or construct a building, set up a factory or even hire someone to do finance research. If someone owns a business that needs funds, they can obtain a loan from a bank or financial institution and pay someone else to do the same. Investors can take out a loan to purchase raw land, build a house, put up a building or even hire someone to do research on their behalf.

There are several different types of people that can work in the finance industry including bankers, stockbrokers, insurance companies and private investors. They can also be divided into two main categories depending on the industry they work in. Corporate finance professionals deal with the financial goods of an established company such as buying shares or issuing shares to issue dividends.

Financial professionals at both the public and private levels have to make financial decisions about which companies to invest in and taking positions about the companies’ futures. While most corporate finance professionals start out as brokers or traders, others can work as shareholders or directors of specific companies. Bankers do most of the work when it comes to handling the day-to-day finance of banking institutions. The three main branches of finance include:

Public finance is the process by which public funds are invested by a government or other large organization in order to yield a higher return to taxpayers. The goal of public finance is to use the resources effectively in order to boost growth, protect the environment, provide public services and create economic opportunities. Public corporations include the Federal Reserve, insurance companies, state and local governments, colleges and universities, the Food and Drug Administration, and individual citizens such as individuals, families, and groups such as foundations and charities.

The third branch of public finance is interest debt management, also known as budgeting. Budgeting is the process of working with lenders to manage existing debt, especially in light of the current financial crisis. A budgeting firm will help manage a corporation’s debt, working with creditors to reduce interest rates and eliminate outstanding debt through a combination of debt management, refinancing, and credit counseling. The primary objective of budgeting is to minimize the risk associated with long-term debt by effectively managing the corporation’s assets and liabilities.

The fourth element of financial planning is long-term planning. Long-term planning, also known as strategic management, is the discipline of conducting the business of an organization over the long term. Strategic management works to ensure that the company has a long-term financial position that is secure and sustainable. The strategies involved include investment in fixed assets, production growth, expansion, and disposal of non-core businesses.

One of the most important aspects of long-term planning is pay attention to cash flow. Cash flow is cash that is generated from operations that add value to the organization and are repaid within a year. Cash managers are financial analysts who are charged with maintaining and generating positive cash flow. They do this by both predicting and providing a forecast for cash flows. They then work with management to establish realistic pay targets for employees, setting appropriate salaries and benefits, and establishing methods of paying employees their salaries. Financial analysts are key members of the finance team of any organization.

Finance is an important function that falls under the broader field of banking. It is one element of banking that is nearly as broad and deep as banking itself. The three main elements of banking are commercial banking, government banking, and savings and loans banking. Within each of these areas, there are many different types of finance such as insurance, investment banking, treasure hunting, commercial lending, and wholesale lending. In essence, finance affects every aspect of banking.