Hopefully i will be able to help some beginners in the field of Finance and would learn from experts by sharing my views/concepts etc.
So, the First question which is asked by many people when we say i am in the field of Finance the question can be?
What is Fiance?
This is the most simple but a tricky question and most of the people don't know it. like me few days back. Now lets come to the answer of this simple question.
Finance is the art of linking TIME, VALUE (MONEY) and RISK. this is the simplest form to define the field of Finance. So, we can say that, the Process of Analyzing Value of money after a period of time under Non Diversified Risks.
The risks are always of two types:
1. Diversified Risk
2. Non-Diversified Risk
1. Diversified Risk:
The risk whcih can be mitigated, reduced or avoided may be called Diversified risk. e.g there is a chance that due to "Voltage variation" our plant can be damaged, we can reduce the risk by using a UPS.
By using UPS we have reduced the risk. it is diversified risk.
2. Non-Diversified Risk:
The risks which are beyond the powers of an individual or a company are called non-diversified risks. Such risks prevails due to market forces.
Best of Luck...!
