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Social finance typically refers to investments made in social enterprises including charitable organizations and some cooperatives. Rather than an outright donation, these investments take the form of equity or debt financing, in which the investor seeks both a financial reward as well as a social gain.
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Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. Basically, finance represents money management and the process of acquiring needed funds. Finance also encompasses the oversight, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems.
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Many of the basic concepts in finance originate from micro and macroeconomic theories. One of the most fundamental theories is the time value of money, which essentially states that a dollar today is worth more than a dollar in the future.
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Financial planning involves analyzing the current financial position of individuals to formulate strategies for future needs within financial constraints. Personal finance is specific to every individual's situation and activity; therefore, financial strategies depend largely on the person's earnings, living requirements, goals, and desires.
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05-13-2020, 11:37 AM
(This post was last modified: 05-13-2020, 11:55 AM by dfsdghvsgd.)
For example, individuals must save for retirement, which requires saving or investing enough money during their working lives to fund their long-term plans. This type of financial management decision falls under personal finance. Since individuals, businesses, and government entities all need funding to operate, the finance field includes three main sub-categories: personal finance, corporate finance.