Finance is an intriguing industry with a rich and diverse history, as well as a distinct and potent influence over the present day. Finance is a field that primarily deals with the allocation and distribution of assets and other liabilities over time as they are subjected to different terms and conditions throughout this period.
This can include financial elements and instruments like interest and bonds, stocks and much more. Finance is basically the science of money and time management, and how the two correlate. One important thing to note in finance is the time value of money, which is the basic premise that asserts how the purchasing power of a currency can change over time, becoming greater or lesser based on economic and other factors.
What financing does, is to use different market and mathematic factors, including risk and reward assessments to determine a fair price for a particular currency. Finance is typically broken into three different sectors, the public, the corporate, and the personal finances.
By studying finances we find ways to put a dollar value on an abstract concept like currency, which is really meant to represent services and goods, as well as the value attached to them. Finance is a necessary part of cultural evolution that allows for things like business and government to operate on a unified system. Without currency and finance, it would be much more difficult to socially engineer large projects, as it would require getting many people with many skillsets together to operate solely on faith.
Fabio Alberto Mendez Dangond is a professional businessman who focuses on finance, and how the finance industry can help fund and develop crucial projects around the world.