Are rising global temperatures the new normal?

During meteorological summer, defined as June through August, several U.S. cities from the East Coast to California either tied or set records for the hottest temperatures on any day in the past seven decades of record-keeping.

People in financial distress behave more morally, says study

A new study conducted at Reichman University, in collaboration with Aarhus University in Denmark, challenges the negative stereotypes associated with individuals facing economic hardship. The study, led by Prof. Guy Hochman ...

Organic farms can double plant diversity—but only with time

It takes a long time, up to several decades, before the benefits of organic farming take full effect on land that was previously cultivated conventionally, a new study from Lund University suggests. After thirty years, the ...

More frequent financial reporting benefits investors

When it comes to financial reporting, how much information is too much? Public companies in the U.S. file reports every three months to comply with the rules of the Securities and Exchange Commission.

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Finance

Finance is the science of funds management. The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted.

Finance works most basically through individuals and business organizations depositing money in a bank. The bank then lends the money out to other individuals or corporations for consumption or investment, and charges interest on the loans.

Loans have become increasingly packaged for resale, meaning that an investor buys the loan (debt) from a bank or directly from a corporation. Bonds are debt sold directly to investors from corporations, while that investor can then hold the debt and collect the interest or sell the debt on a secondary market. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important as they invest in various forms of debt. Financial assets, known as investments, are financially managed with careful attention to financial risk management to control financial risk. Financial instruments allow many forms of securitized assets to be traded on securities exchanges such as stock exchanges, including debt such as bonds as well as equity in publicly-traded corporations.[dubious – discuss]

Central banks act as lenders of last resort and control the money supply, which affects the interest rates charged. As money supply increases, interest rates decrease.

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