The Definition of Finance by Different Author

Know what the definition of finance from different points of view and what its basic elements to consider ...are

the term finance comes from the Latin "finis" which means end or finish. It is a term whose implications affect both individuals and businesses, organizations and states it has to do with obtaining and using or money management.

Therefore, and regardless of profession or occupation that we have, it is necessary to know what it is, what it means or just what is the definition of  FINANCE, because all one way or another, we perceive money we spend, we borrow and some also invest and take risks.

Definition of Finance, according to various authors:

Simon Andrade, defines the term finances of the following ways:

1. "Area of ​​economic activity in which money is the basis of the various embodiments, whether stock market investments, real estate, industrial, construction, agricultural development, so on. ", and
2. "Area of ​​the economy in which we study the performance of capital markets and supply and price of financial assets”

Finance is "study how scarce resources are allocated over time (Bodie and Merton)".

The term finance refers to "all activities related to obtaining money and effective use (O. Ferrel C. and Geoffrey Hirt )"

The free encyclopedia Wikipedia, have to finance

1. "are a branch of economics that studies the acquisition and management by a company, individual or government, funds necessary to meet its objectives and criteria that has its assets, "and
2. "Is generally defined as the art and science of managing money."

At this point, and taking into account the above proposals, I propose the following definition of Finance:

Finance is a branch of economics that studies the acquisition and effective use of money over time by an individual, corporation, organization or state.

Given the above, we find that the term includes the following financial basics that we take into account:

1. It is a branch of the economy. Recall that one definition of economics is: "The line and prudent management of scarce resources in a society, family or individual in order to meet their needs in the material". Within this context, financial resources are focused on economic (money).

2. Studies the acquisition and effective use of money. Thus, in general, help make decisions about how much to spend, how much to save, as given, how much to invest, how much risk you run.

3. It affects individuals, businesses, organizations and states. Hence, finance specializes according to their field of action, personal finance, corporate and public.