Answer:
The four general areas of finance are:
- Investments - this area of finance deals with the investments to be made by people in order to gain returns. Investments can be in a wide range of asset classes and products such as rea estate and stocks. Risk vs return is a very important concept that guides decisions in this area.
- Financial Institutions - These play a very vital role in the financial world as they contribute to the movement of money in the financial system from providing avenues for investments to getting money to those who need it for investments.
- Corporate finance - relates to the decisions made by the powers that be in companies on how to manage the company such that it brings about positive returns for its shareholders.
- International finance - This deals with financial services on an international scale and has become ever so important as the world becomes more integrated.
Importance of understanding managerial finance
A person who works in the financial markets aims to make gains by investing in companies. It would therefore be prudent of them to ensure they know the responsibilities of those in management in those companies so that they will predict the actions of those companies and take advantage of that to make a gain in the financial market.