Hello Dear Lions,
I am coming with another post. In this post i am going to submit my entry for the Zealy Adoption Campaign by @leofinance. There are so many Adventures on the campaign. Basically I am writing this post for The Finance Bro Adventure Quest.
The Finance Bro Adventure
Long Form content is a key Feature on Leo Finance.
This Adventure is for those who are into Money-related content creation, or those who want to learn about these topics! After all, Leo Finance wants to provide our users the tools to become financially savvy and achieve financial independence.
GUIDE đź“š
This is the largest adventure and it will require research from you, make sure to pace yourself and take the Quests step by step.
- You don’t have to be an expert to finish this Adventure, but you will need to do some research (and cite your sources).
- Do not use AI for the article.
- Beware of grammar/spelling mistakes. If the article is unreadable or has too many spelling mistakes it won’t count for this task.
- Do not plagiarize. If you use sources, cite them at the end using the format [ ] ().
- Use any relevant tags, including tags related to the title of the post.
- You have to connect your LeoFinance account to your Zealy account, otherwise there’s no way for us to approve this quest.
In this post I am going to share my Analysis about Finance. Before writing this post I got knowledge about it from different places. In this regard I have studied articles from different platforms. So let's start now.
Finance is a term for matters regarding the management, creation, and study of money and investments. It involves the use of credit and debt, securities, and investment to finance current projects using future income flows. Because of this temporal aspect, finance is closely linked to the time value of money, interest rates, and other related topics.
Finance can be broadly divided into three categories:
- Public finance
- Corporate finance
- Personal finance
Finance is typically broken down into three broad categories: public finance, corporate finance, and personal finance. Public finance includes tax systems, government expenditures, budget procedures, stabilization policy and instruments, debt issues, and other government concerns. Corporate finance involves managing assets, liabilities, revenues, and debts for a business. Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings, and retirement planning.
These are some key finance terms you should be familiar with.
Asset: An asset is something of value, such as cash, real estate, or property. A business may have current assets or fixed assets.
Liability: A liability is a financial obligation, such as debt. Liabilities can be current or long-term.
Balance sheet: A balance sheet is a document that shows a company's assets and its liabilities. Subtract the liabilities from the assets to see the firm's net worth
Cash flow: Cash flow is the movement of money into and out of a business or household.
Compound interest: Unlike simple interest, which is interest added to the principal one time, compound interest is calculated and added periodically. This results in interest being charged not only on the principal, but also on the interest already accrued.
Equity: Equity means ownership. Stocks are called equities, because each share represents a portion of ownership.
Liquidity: Liquidity refers to how easily an asset can be converted to cash. For example, real estate is not a very liquid investment, because it can take weeks or months to sell.
Profit: Profit is the money left over after expenses. A profit and loss statement shows how much a business has earned or lost for a particular period.
Public Finance
The federal government helps prevent market failure by overseeing the allocation of resources, distribution of income, and stabilization of the economy. Regular funding for these programs is secured mostly through taxation. Borrowing from banks, insurance companies, and other governments and earning dividends from its companies also helps finance the federal government. State and local governments also receive grants and aid from the federal government. Other sources of public finance include user charges from ports, airport services, and other facilities; fines resulting from breaking laws; revenues from licenses and fees, such as for driving; and sales of government securities and bond issues.
Corporate Finance
Businesses obtain financing through a variety of means, ranging from equity investments to credit arrangements. A firm might take out a loan from a bank or arrange for a line of credit. Acquiring and managing debt properly can help a company expand and become more profitable. Startups may receive capital from angel investors or venture capitalists in exchange for a percentage of ownership. If a company thrives and goes public, it will issue shares on a stock exchange; such initial public offerings (IPO) bring a great influx of cash into a firm. Established companies may sell additional shares or issue corporate bonds to raise money. Businesses may purchase dividend-paying stocks, blue-chip bonds, or interest-bearing bank certificates of deposit (CDs); they may also buy other companies in an effort to boost revenue.
Personal Finance
Personal financial planning generally involves analyzing an individual's or a family's current financial position, predicting short-term, and long-term needs, and executing a plan to fulfill those needs within individual financial constraints. Personal finance depends largely on one's earnings, living requirements, and individual goals and desires. Matters of personal finance include but are not limited to: the securing of financial products like credit cards; life and home insurance; mortgages; and retirement products. Personal banking (such as checking and savings accounts, individual retirement accounts (IRAs) considered the part of personal finance.
Finance is a broad term that describes a variety of activities. But basically, they all boil down to the practice of managing money—getting, spending, and everything in between, from borrowing to investing. Along with activities, finance also refers to the tools and instruments people use in relation to money, and the systems and institutions through which activities occur.
So that's all for this post. I am so glad to be a participant of the Zealy Adoption Campaign. You can also Participate on this Campaign. Join the campaign through my link :- https://zealy.io/c/leofinance-4960/invite/Sm_CZ5DjGnDXcVGdk_PSe
There is a total of $10,000 USD Prizepool in this Campaign. So don't be late to participate in this amazing campaign.
- Free images from Unsplash
Thanks for reading my post. Thanks for supporting me. I will be back with another exciting content soon. Till then good bye and have a good day.
Sincerely yours,
@vagabondww