What do you
actually mean by Finance ? The word "Finance" itself has been
evolving as centuries pass by .Even if you look at the definition part it
covers a wide range of areas. From mere lending of money it has now evolved
into accounting, banking, Financial instruments, Financial markets, Corporate
Finance, Public Finance, Finance Regulators, Personal Finance and so on. For
everything and anything you can easily relate it to money. Finance has become
so popular and unavoidable in each one's life.
History states
that in 2000BC lending of money to farmers and traders started in Assyria and
Babylonia which got evolved and now we call it as banking. If one looks at
evolution of finance or indeed our economy as such we can see that it is
becoming more complex .The scope as well as the areas covered under finance
branch is expanding. Finance has thus become the crux and epitome of each and
every business and indeed the whole economy. The whole economy in one way or
another depends upon the financial performance of various industries and
sectors. After Globalization, world became small and easy to access but
financial aspects became complex .Corporate Finance ,Mergers and acquisitions,
Tax Regulations started gaining importance.
Finance can be fun
as well. So it’s like a matchstick where it will give light and happiness to
you and the entire room in the form of "money" or will burn your
finger if you don’t use your money well or if you don’t follow the various
rules and regulations that one needs to know .The best example is the Great
recession which started in US in the year 2007(Sub -Prime Crisis) , the impact
of which is still continuing.
Apart from macro level, finance is also very
much important for each and every individual. One needs to have a sound
financial knowledge, one needs to know the various financial instruments and
the risks associated with it to have a secure future. Financial planning is
like building a pyramid, where you have to strategically and tactfully build it
so that it won't collapse because after all its your money, your sweat and
hardwork and I bet no one wants to lose this one easily ...!!
So in short, one could say that the word
finance has become the part and parcel of each one's life whether knowingly or
unknowingly and evolution of finance is still continuing.
This Article is written by Rahul Tomy (PGDM 2014-16)
This Article is written by Rahul Tomy (PGDM 2014-16)
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