Field in Finance

1.Personal Finance

Personal finance is that field of finance in which tools and techniques of finance is used for effective use of an individual fund. In other words, personal finance refers to the all decisions which will be helpful for family for making good personal budget, investment and saving in different schemes. It also includes personal income tax management. Following are main categories of personal finance. 2.Corporate Finance Corporate finance is an area of finance dealing with financial decisions business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm's financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms. Main Categories of Corporate Finance are following a) Investment analysis b) Risk Management 3.Public Finance Public finance is that field of finance which deals with governmental financial decisions. In this field government has take the decision of relating to his fiscal policy, government budget and tax amendments for getting money from public for governmental expenditures. Followings are its main categories. a) Income Tax b) VAT c) Government Budget d) Government Bonds e) Fiscal Policy f) Government Investment g) Government Spending h) Government Debt i) Seigniorage 4.International Finance International finance is the branch of finance that studies the dynamics of exchange rates, foreign investment, and how these affect international trade. It also studies international projects, international investments and capital flows, and trade deficits. It includes the study of futures, options and currency swaps. International finance is a branch of international economics. 5.Educational Finance In Education Finance, we include the financial decision relating to provide educational loan easily. Education finance also helps to provide fellowship and scholarship to brilliant students for completing their higher studies without any financial problem. a) A student loan is designed to help students pay for college tuition, books, and living expenses. It differs from other types of loans in that the interest rate is substantially lower and the repayment schedule is deferred while the student is still in school. Before accepting any kind of student loan one should be familiar with its basic attributes. b) Fellowships are awards made either competitively or in recognition of achievement (or both). They generally carry the title "Fellow" and a financial award. c) Student financial aid refers to funding intended to help students pay educational expenses including tuition and fees, room and board, books and supplies, etc. for education at a college, university, or private school. General governmental funding for public education is not called financial aid, which refers to awards to specific individual students. Certain governments, e.g. Nordic countries, provide student benefit. A scholarship is sometimes used as a synonym for a financial aid award, although grants and student loans are also components of financial aid packages from students' intended colleges. d) A scholarship is an award of financial aid for a student to further education. Scholarships are awarded on various criteria usually reflecting the values and purposes of the donor or founder of the award. 6.Behavioral Finance It is that field of finance in which social and emotional factors are studied if market prices are changed. Large number of consumers, borrowers and investors decides according to their behavior. To study the psychology of investors are included in it. This study is used by company for taking benefits from them. 7.Structured Finance Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk using complex legal and corporate entities. This risk transfer as applied to securitization of various financial assets (e.g. mortgages, credit card receivables, auto loans, etc.) has helped to open up new sources of financing to consumers. 8.Offshore Finance Offshore finance is that field of finance in which we study digital gold currency and offshore fund and other offshore law firms. a) Digital gold currencies are issued by a number of companies, each of which provides a system that enables users to pay each other in units that hold the same value as gold bullion. These competing providers issue independent currency, which normally carries the same name as their company. In terms of the most popular providers, e-gold has the greatest number of users. b) Many organization creates offshore fund in which international investors invests their money. 9.Mathematical Finance Mathematical Finance is that field of finance which studies the mathematics for using its rules and regulation for development of finance. In the financial market many numerical logics are on the base of mathematics rules. This subject creates close relationship between finance and mathematics. Thus, for example, while a financial economist might study the structural reasons why a company may have a certain share price, a financial mathematician may take the share price as a given, and attempt to use stochastic calculus to obtain the fair value of derivatives of the stock . In terms of practice, mathematical finance also overlaps heavily with the field of computational finance (also known as financial engineering). Many universities around the world now offer degree and research programs in mathematical finance.