What is Finance??
A single word that clearly defines finance is “EXCHANGE”. Finance is an exchange of financial resources.
Just exchange and management of money do not finance, the term is much wider than this.
Finance is a prerequisite activity to carry out major physical activities of business such as compensation, sales, uncertain liabilities and some others.
It is a heart and soul for any business. It is an art to manage the resources like money, stocks, real estate property, securities and other resources.
Finance Industry Role and Importance
Finance industry plays an important role in the world economy.
It includes all the companies who are indulged in insurance, investing, lending, trading, security, and insurance.
It gets its clientage from nonprofit organizations, individuals, businesses and some other agencies of government.
Finance industry acts as a backbone for many other industries as well.
Government supports the finance industry to fund, pay and protect the companies that are too huge to get failed and collapsed and if they did then the trade and commerce would come to host.
Types of Financial Services
These are the services that help an individual to manage their financial issues in an organized way and make them relaxed regarding their money and assets.
The various financial services that one can avail from a financial organization are: –
- Banking – this is a sector divided under public and private organization.
One can avail the bank services to deposit his/her cash securely and withdraw them whenever they require. Bank also provides the interest on the money you deposit.
The borrower can get the loan from the bank by depositing some kind of their asset as security.
They have to pay back the loan under the certain period mentioned by the bank with the added interest which is to be paid periodically to the bank.
- Insurance – Availing this service you can be stress-free and protected against financial loss.
There are various different kinds of insurance policies like life insurance, car insurance, health and medical insurance which would help you in case of any miss happening.
Insurer gets insurance policy where all the terms and conditions and all the circumstances under which an insurer would be compensated are mentioned.
The insurance company would pay you for your loss in such a case.
- Stock Market – Stock Market, Equity or share market is a network of buyers and sellers of stocks or shares of companies.
Rise and fall are rapid in the stock market.
If one has a good knowledge of different companies and makes a wise investment in the stock market than the returns could be much more than expected from investments in fixed deposits.
- Treasury of Debt Instruments – It is a paper or legal contract that allows the issuer to raise funds on a promise to repay back the borrowed sum with the interest in accordance with the legal contract on a timely basis.
There are different kinds of instruments which include bonds, debentures, notes, certificates, mortgages, leases and other agreements between a lender and a borrower.
- Mutual Funds – It is an investment fund that raises money from investors in the market to buy securities.
They track asset column of the market and generate profit and loss return on this basis.
There are various different kinds of Mutual funds: –
- Equity Funds
- Balanced Funds
- Index Funds
- Specialty Funds
- Fixed Income Funds
- Tax and Audit Firms – These organizations or firms help people in tracking and determining their tax liabilities.
They act as a helping hand to the customer to save tax in a smart way and filing their tax return on proper time to prevent any loss.
- Wealth Management – There are some companies where you can park your money and then these companies make investments in the form of different assets like stocks, bonds, money market, derivatives and generate handsome returns for their customers.
Top Financial Services Companies in India: –
LIC Finance Limited
SBI Capital Markets Limited
Birla Global Finance Limited
Bajaj Capital Limited
DSP Merrill Lynch Limited
Housing Development Finance Corporation
PNB Housing Finance Limited
L&T Finance Limited
Demand and Supply of Financial Industry
Information Availability of Information
Access to Alternatives
Availability of Information
The financial services industry encompasses companies in more than one kind of businesses: –
- Financial Planning
- Wall Street
- Investment Management
- Security Trading
- Security Analysis
- Investment Banking
- Security Brokerage
- Financial Consulting
- Financial Information Services
- Public Accounting Services
- Regulatory Agencies and Securities Exchanges
40 Best Companies of the World in Financial Industry
- Quicken Loans
- Navy Federal Credit Union
- Edward Jones
- Capital One Financial
- Pinnacle Financial Partners
- Prime Lending
- Bankers Healthcare Group
- Credit Acceptance Corporation
- Veterans United Home Loans
- TD Bank
- American Express
- Renovate America
- On deck Capital
- Allianz Life Insurance Company of North America
- New American Funding
- ESL Federal Credit Union
- S. Bank
- Mountain America Credit Union
- Acuity Insurance
- American Fidelity Assurance
- First Horizon National
- Grow Financial Federal Credit Union
- Evergreen Home Loans
- First American Financial
- The Alliant Credit Union
- Walker & Dunlop
- Total Merchant Services
- Network Capital Funding
- City Credit Union
- Oppenheimer Funds
- Funeral Directors Life
- West Bend Mutual Insurance Company
- Synchrony Financial
- PURE Insurance
- FactSet Research Systems
- National MI
Rest Top of the line Companies are: –
- Susquehanna International Group
- The World Group
- ING Direct
- Goldman Sachs
- GE Capital
- Fidelity Investments
- Standard Chartered Bank
- American Express