Monday, May 23, 2011

Finance is A Science

Finance is a science that deals with money, time and risk. Precisely, this is how the money has grown to social activities. It has big influence for each country among the economy of the state, corporate networks , personal or public entity.

We might call the art of finance for investment, because investment is not something you learn in school, but a complex science that a number of factors including feelings, emotions, tenders, economic and political.

A good financial advisor who knows asset allocation plays an important role to reduce risk and maximize revenue tends. This is why many companies do not invest their money, but more generally on the reputation of the investment banks that manage to leave their financial assets and recommend the best strategies, taking into account the global economy.

The battle field of finance is the equity market, where individuals, companies and all companies in the market: mutual funds, bonds, equities, commodities, goods and services.

Each country has developed its own modern science, but as you can imagine, these are the most powerful countries that affect the world economy and its stock markets, like Wall Street, London, Shanghai, Tokyo and Frankfurt.

The funding is not simply determined by the market share of above, but many other aspects, such as expectations, explain why funding is often defined as conduct research.

The main holding companies, in fact, not only a comprehensive knowledge of economics, but also the mechanisms of media and mass psychology.

The media, as a medium of communication network used to disseminate news, is the source of information for investors and potential investors to refer its decision. A political crisis, a terrorist attack, flood or other weather could keep thousands of people Äúdaring, AU.

It's equally important to increase the role of central banks, whose policies and actions or slow the global economy played. Normally, when a central bank wants the economy to grow and the most dynamic market, lowered interest rates so more people can easily get mortgages, loans and other forms of credit conditions.

In general, Finance divided into (1) Business Finance or Corporate Finance, (2) Personal Finance, and (3) Public Finance.

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