What are the 4 basic areas of finance?

The four basic areas of finance are:

1. Corporate Finance (Business Finance)

   • Focuses on how companies raise and manage capital, make investment decisions, and maximize shareholder value.

   • Key topics: capital budgeting, capital structure, working capital management, mergers & acquisitions.

2. Investments

   • Deals with buying, selling, and managing financial assets like stocks, bonds, mutual funds, and real estate.

   • Key topics: portfolio theory, risk vs. return, asset pricing, financial markets, and derivatives.

3. Financial Institutions & Markets

   • Studies how money flows through the economy via banks, insurance companies, stock exchanges, and regulatory bodies.

   • Key topics: interest rates, monetary policy, banking systems, capital markets, and financial regulations.

4. International Finance (Global Finance)

   • Examines financial interactions across countries, including exchange rates, international trade, and cross-border investments.

   • Key topics: foreign exchange markets, global capital flows, multinational corporations, and risk from currency fluctuations.

👉 Sometimes textbooks group them slightly differently (e.g., combining international with corporate or investments), but these four are the standard core areas.