finance

Finance is a concept that relates to balancing risk and profitability and can be exercised by an individual, organization or government. It normally involves a set of objectives and constraints designed to yield rewards. Today, finance most often relates to the “financial instruments” backing the value of goods or services. Financial instruments are bought and sold to provide a yield assuming risk is managed properly.

How financial instruments are valued is complicated and prone to market speculation.

Financial instruments come in a variety of forms, including stocks and bonds. When these instruments are owned, they are assets. They then are used to provide credit, which is used to invest in goods and services.

When risk isn't managed properly, financial instruments lose value. Governments regulate finance to protect the public-at-large from greed. Greed can also cause outright fraud, which is another reason for regulation.

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Original Technorati articles tagged “finance”

• in Finance
  Index Funds Go Overlooked During Time of Economic Uncertainty
  When it comes to investing in today's economy, don't overlook the Index Fund.
  by jaybuerck / on Dec 1, 2011
• in Finance
  The “American Dream” is a Financial Nightmare
  Yahoo financial survey finds many Americans plan to live off of Social Security, and have no savings for their childrens' futures.
  by stephengfm / on Nov 16, 2011
• in Finance
  The End Of The Euro?
  As Greece stands on the brink of exiting the Eurozone, what hope for the Euro?
  by jasonshaw99 / on Nov 6, 2011

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