Like it or Not, Finance Matters, a Lot
Finance. We hear that word thrown around
quite a bit and used in phrases like in the world
of high finance or financing options are available
for those who qualify, but what does it really mean?
It doesnt take an E.F. Hutton or J. Paul Getty to
understand that the term finance and variations like
financial, financing, financier, and such are related
to monetary matters. You may be surprised, however,
just how many people have no real idea what is meant
by finance. In fact, its safe to say that much of
America has a better fix on the goings on inside the
Big Brother house than they do on what happens at
the Federal Reserve! This is sad, but true.
The American Heritage Dictionary of
the English Language offers four definitions for the
word finance. They are:
1. The science of the management of
money and other assets.
2. The management of money, banking,
investments, and credit.
3. Finances Monetary resources; funds,
especially those of a government or corporate body.
4. The supplying of funds or capital.
The third and fourth definitions are
not what were dealing with here as they indicate the
funds and capital belonging to a person, persons,
or business entity (My finances are in total disarray!)
and the act of lending money (I couldnt buy the new
SUV because I didnt qualify for the financing.).
The first and second definitions, however,
are right on the, um, money. This is what theyre talking
about on CNN Financial. This is what concerns economists
and financial analysts. This is what should concern
you. The world of finance in the United States revolves
around several things. These include the stock market
because the prices at which stocks trade are a direct
result in most cases of how well the companies are
doing, the actions of the Federal Reserve which sets
interest rates and is responsible for the coining
of money, and the value of the American dollar as
compared to other national currencies.
Many people think that, unless they
have significant investments and considerable assets,
financial matters like these do not concern them.
Nothing could be further from the truth. The unfortunate
fact is that, while the wealthy are more immediately
concerned with finance, the common people are usually
the most affected when extreme changes in the financial
world happen. The stock market crash of 1929 is a
prime example of how drastically financial upheavals
can effect everyone in the country.
Finance Tips by Mika Hamilton Read more
free investment tips, tutorials & reviews at http://www
.Global-Investment-Institute.com
