Finance is a broad term encompassing concepts about the study, development, management and allocation of monetary resources. In particular, it includes the questions of who, what, when and where an individual, firm or government obtain the money necessary to operate their enterprise and/or accumulate their savings (called capital in the business context). Finance is not just a matter of figuring out how much something costs. It is also a matter of understanding how to price something to the market. It involves both financial and non-financial issues like management of financial risk, allocation of resources, risk-taking behavior, inflation, deflation and the theory of value. These concepts are interrelated but distinct aspects of the study of finance.
The major components of modern day finance are money management, banking, financial markets, and investing. There is also a sub-field of applied research in finance which is known as asset pricing theory. This school of thought looks into the effect of changes in certain financial variables on the valuation of particular firms and financial portfolios.
Finance is one of the most important and widely used fields in all of human history. It is the field upon which a great deal of economic activity is based. Ancient societies depended on finance as the source of the issuing of currencies. Later, banking developed as a commercial activity. Modern banking is the science of secured loans and banking products.
Communication skills are important in understanding and communicating with others in the business world and within other professional domains. Communication in the financial transactions context requires the ability to understand accounting theories, practice proper accounting procedures and communicate effectively about financial matters. Accounting is a branch of study that has developed over the years to facilitate the exchange of financial instruments between different parties. The study of accounting is the foundation for the discipline of accounting. Auditing, the detection and evaluation of accounting errors in accounting procedures, and the preparation of accounting reports, are an essential function of accounting.
Communication skills are equally valuable for professionals working in accounting, finance, economics, computer science and related areas. Accounting and finance career paths require both strong writing and speaking skills. Finance authors are required to have good mathematical ability and have strong written communication skills. Finance writers are also required to have excellent oral and written communication skills. Thus, all finance professionals should ideally have above average writing and speaking abilities.
In the United States, most of the financial analysts begin their careers in Wall Street where they either work for major brokerage firms or in smaller firms that focus on finance specific services. Many young people enter the financial analyst career paths because they have an interest in financial markets and want to make a significant contribution to economic growth. As a result, there are many entry level jobs available in the United States for these professionals.