Concept in Definition ABC

Finance is understood to be all those activities related to the exchange and capital management. Finance is a part of the economy since they have to do with the different ways of manage money in particular and specific situations. Finances can be divided into public or private finances depending on who is the subject that administers the capital: if a particular individual or if the State or other institutions public.

Although the exchange and capital exchange activity has always existed in human societies, we can say that the 15th century, with the emergence of the capitalism It is the central moment to be able to talk about finance as we know it today. It is at this time that banks, money changers, intermediaries and other characters or social actors responsible for this type of activity appear. At the same time, the 20th century is the century in which capitalism begins to focus its attention almost exclusively on financial activities, these becoming more important than industrial or commercial activities of other epochs.

Finances are nothing more than administration and capital management. In this sense, to carry out the finances of a company, of a institution public or even personal finances, it is necessary to have the training specific to the area since it is often required to know concepts, operations and procedures of the economic area. The main purpose of finance is to keep the economy in order. Balance between incoming capitals (investments or earnings) and the outgoing (deposits or expenses). While most institutions, companies and companies have a finance area with professionals in charge of such activity, personal finances are often assigned by individuals to trained individuals to carry them out. cape.