The word “Finance” means anything related to money. It may mean money itself or it may also mean the various institutions that are working regarding money like Stock Markets, Banks, Insurance Companies etc. Finance is a thing which has been there from the ancient times. In olden times, money was used in a different way. Various systems like Barter system which means nothing but “giving and taking “was used. Today, the world of finance has become whole lot complex. It involves various complicated systems and also theories. Finance is like fire. It can help to see the path, but it can also burn the building of a person. Thus, it must be dealt with very carefully.
Banks are one of the most important financial institutions. They deal with storing money, and also lending it. It connects the haves and have nots. The influence of banks is very strong and thus it must be regulated. Modern day banking evolved from Renaissance Italy in places like Florence, Venice and Genoa. The oldest bank of the world is the Monte dei Paschi di Siena, headquartered in Siena, Italy. The bank was expanded after 2000 and underwent the Antonveneta acquisition during 2006-2008. Other major banks of the world are Barclays Bank of UK, HSBC Bank of UK, Bank of America, and HDFC Bank etc.
Stock Markets or equity markets are public entities that deal with the trading of company stocks and derivatives at an agreed price. Some of the major stock exchanges of the world are the New York Stock Exchange, London Stock Exchange, Bombay Stock Exchange etc. There are various participants in the stock market ranging from stock investors to large hedge fund traders. There are electronic stock exchanges like the Paris Bourse.
Insurance is one of the most important things in modern day life. In layman term, it means protection against various kinds of risk that may come in one’s life, but in economic terms it means equitable transfer of risk or loss. It involves insurance companies and also insurance agents. Some of the major insurance companies are Max Life Insurance, AIG, and LIC etc. In India, LIC is the biggest provider of life insurance. It is a group and investment company. It was founded on 1st September, 1956. The headquarters of the company is located in Mumbai, India. The total assets of the company are estimated at 13.25 trillion Indian Rupees, which is close to 24.6% of the Indian Govt.’s expenses.
Finance is one of the most important things in anybody’s life. Finance is the fundamental thing that is required for survival. Money can make or break people’s life. Money is the thing that must be dealt very carefully. Without money, life becomes stagnant. Money is required not only for the lavish requirements of a person but also for the basic needs of life like food and medicine. Thus finance is one of the pillars of a person’s day-to-day living.