Finance is understood to be all those activities related to the exchange and management of capital. Finance is a part of the economy since it has to do with the different ways of managing money in particular and specific situations. Finances can be divided into public or private finances depending on who is the subject that manages the capital: if a private individual or if the State or other public institutions.
Although the exchange and capital exchange activity has always existed in human societies, we can say that the 15th century, with the emergence of capitalism, is the central moment to be able to talk about finance as we know it today. It is at this time that banks, money changers, intermediaries and other characters or social actors responsible for this type of activity appear. At the same time, the twentieth century is the century in which capitalism begins to focus its attention almost exclusively on financial activities, these becoming more important than industrial or commercial activities of other times.
Finance is nothing more than the administration and management of capital. In this sense, to carry out the finances of a company, a public institution or even personal finances, it is necessary to have specific training for the area since it is often required to know concepts, operations and procedures in the economic area. The main objective of finance is to allow an orderly balance between incoming capital (investments or profits) and outgoing capital (deposits or expenses). While most institutions, companies and companies have a finance area with professionals in charge of such activity, personal finance is often assigned by individuals to individuals trained to carry it out.
