Definition of finance Essay Example | Topics and Well Written Essays - 250 words

Definition of finance - Essay ExampleKnowing which investment to make with the available resources also collects being aware of levels of irresolution attached to the investment. When classifying investments, they may be grouped into either laconic-term- where returns are expected within a short time-frame, and long-term-where returns are expected after a relatively long time.Finally, there is the sources of finance, commonly referred to as funding, includes financial institutions i.e. banks, informal bring facilities i.e. shylocks, financial instruments e.g. bonds and liquidating assets that are not in use. There are also debts where a company, individual or group may decide to transfer a debt previously incurred to a lending institution or individual. The lending institution or individual would then receive repayment of the debt when due. This is make where a relationship or trust has been built between the borrower and lender and it usually implies an urgent situation. A com pany, individual or business may choose this as a source of funding when they require money urgently and mostly the decision is arrived at, as a last