Web Definition: Finance
Finance addresses the ways in which individuals, business entities & other organizations allocate & use monetary resources over time. As a verb, to finance is to provide funds for business. The activity of finance is the application of a set of techniques that individuals & organizations use to manage their financial affairs, particularly the differences between income & expenditure. An individual or organization whose income exceeds their expenditure can lend or invest the excess. On the other hand, an individual or organization whose income is less than their expenditure can borrow, decrease their expenses, or increase their income. The lender can find a matching borrower, or can resort to a financial intermediary, such as a bank or the bond market. The lender receives interest, the borrower pays interest & the financial intermediary pockets the difference. A bank aggregates the activities of many borrowers & lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers.
Read More »Dictionary Entry: The income of a ruler or of a state - revenue - public money - sometimes, the income of an individual - often used in the plural for funds - available money - resources. To conduct the finances of - to provide for, and manage, the capital for - to financier.
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