Finance

Finance is a familiar concept in life. It affects all aspects of the economy. Especially, for the stock market, the role of finance is even more evident.

Finance is a method of mobilizing, allocating and using money resources to meet the needs of economic and social entities. Simply put, finance is expressed through the way you manage and use your money scientifically to meet your needs. That can be investing, borrowing, lending, saving and more.

The mobilization function of finance

Mobilization is the function of creating money sources. It shows the ability to exploit money resources to meet the development needs of the economy.

Capital mobilization must comply with market mechanisms, supply and demand relations and the value of money. Moreover, the capital mobilization function depends on the economic environment. If the economy is in crisis, entities will have difficulty mobilizing capital.

Distribution function of finance

Distribution is the function of dividing money resources in society for different purposes. This function is performed by the subjects: State, enterprises, social organizations, households or individuals.

Supervision function of finance

Supervision is the function of checking the movement of money resources to achieve the set purposes. It is an objective tool to control the process of allocating money resources of society. Supervision is carried out through the analysis of financial indicators synthesizing all activities of society. Supervision is extensive, comprehensive, regular, continuous and effective.

The role of finance

The role of finance is extremely important. It is the premise for a State to exist, develop and comprehensively manage society.