Chapter 1
Introduction to Finance and Financial Markets
Abstract
Finance is a study of how people allocate scare resources over time.
Keywords
finance
financial markets
financial instruments
securities
1.1. Finance
Finance is a study of how people allocate scarce resources over time. Time is also a resource.
Finance can be divided into specific areas based on different criteria that are shown in the following table:
| Subject Split | Theoretical Roots | Research Focus | Geographical Focus | Profitability |
| Public finance | Financial economies | Time series analysis | Local finance | Profit-oriented organization finance |
| Corporate finance | Financial mathematics |
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