Finance is to realize the equivalent circulation of value and profit after the re-integration of existing resources. From the professional point of view, the process from savings to investment can be narrowly understood as financial dynamic monetary economics. Finance is the behavior that people make decisions on the optimal allocation of resources in an uncertain environment.
The essence of finance is value circulation. There are many kinds of financial products, including banks, securities, insurance, trusts and so on. Finance involves a wide range of academic fields, including accounting, finance, investment, banking, securities, insurance, trust and so on.
Extended data:
Finance has five elements:
1. Financial object: currency (funds). The currency circulation regulated by the monetary system has the characteristics of prepayment, turnover and appreciation;
2. Financial model: represented by the credit model of lending. The trading objects in the financial market are generally written proof of credit relationship, contract documents of creditor's rights and debts, etc.
Including direct financing: no intermediary intervention; Indirect financing: financing realized through the intermediary role of intermediary institutions.
3. Financial institutions: usually divided into banks and non-bank financial institutions;
4. Financial place: financial market, including capital market, money market, foreign exchange market, insurance market, derivative financial instrument market, etc.
5. System and control mechanism: supervise and control financial activities.