The meaning of financing



Contents

  • 1 Definition of financing
  • 2 financing classes
    • 2.1 Personal Finance
    • 2.2 Corporate finance
    • 2.3 public financing
  • 3 References

Definition of financing

Financing can be defined as a financial system that deals with efficient money management, and is usually classified as a branch of the applied economy , and those who have sufficient knowledge of the principles of economics are characterized by a rapid awareness of financial concepts, and the financing includes some basic topics such as loans, savings, and budgeting , Investment, and others, [1] There are two main types of financing, which are: [2]
  • Borrowing finance: forms the money provided by an external lender, such as a credit union, bank, or building association.
  • Equity financing: represents funds obtained from within the company.

Financing classes

Personal finance

Financial financing includes the development of a specific strategy to meet the future needs of the individual, or the family based on an analysis of their current financial situation, within financial constraints, and this type of financing depends on an individual’s profits , goals, desires, and living requirements, and personal finance includes the purchase of personal financial products Such as credit cards, insurance, various types of investments, and real estate loans. Banking services are also parts of personal finance, such as mobile phone or Internet payment services, and auditing and savings accounts. [3]

Corporate finance

Corporate finance consists of financial activities related to managing a particular company. For example, a large company may have to decide whether to raise more money through offering shares or issuing bonds, and investment banks can advise the company on these considerations, and help them to market Securities, as well as startups can receive capital from owners of capital, or from proprietary investors in exchange for a percentage of ownership, and if the company succeeds, and decides to offer its shares for public subscription, it will publish its shares on the stock exchange in an initial public offering to collect Al-Amu For. [3]

Public financing

Public financing includes policies for issuing debts, expenditures, taxes, and budgeting, all of which affect how the government determines the amount of financial payment for the services it provides to the public, and regular government funding is often secured through taxes , in addition to borrowing from banks and other governments And insurance companies, as the federal government helps prevent market failure by overseeing income distribution, allocating resources, and achieving economic stability. [3]

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