Finance Career Paths
Finance is a broad term encompassing a range of topics regarding the science of investing, creating, and managing money and other financial resources. In particular, it focuses on the questions of why and how an individual, institution or government get the funds needed for their activities, which are also termed assets in the business context. The discipline of finance traces its origins to the Roman law of parsons, who were allowed to depute counselors to settle disputes between citizens about ownership of land, goods and services. Although the Roman law did not include any allowance for personal liability, the Parsons were nonetheless accountable to account for their actions. For this reason, various concepts such as justice, equity and property were introduced to fill in some of the legal gaps left by the laws concerning the ownership and acquisition of possessions.
Today, there are two main branches of the discipline of global finance. The primary branch is private financial services, which includes insurance companies, venture capitalists, banks, investment firms and securities firms. The second is public finance, which encompasses taxation, policy development, public infrastructure financing and the financing of public enterprises such as colleges, hospitals and the like. All these activities form the basis of the overall financial framework of the nation and are informed by the discipline of global finance.
Private financial services are divided into three main strands. The first is banking, which is the process through which individuals, corporate institutions and other entities to make and manage their own investments. The second is the banking sector, which is made up of the major financial institutions and insurance companies. The third strand is securities and derivatives, which refer to the various financial instruments (such as stocks, bonds, derivatives and mortgage backed securities) that facilitate transactions between buyers and sellers. These transactions are mainly conducted through trading houses and financial intermediaries.
It can be said that Finance has three main principles that determine its proper management. First, it is determined by the ability of a firm to generate new economic activity. Second, it is determined by the strength of the governmental structure. And third, it is influenced by the attitude of the financial sector towards the changes taking place in the economy. In fact, there are times that the growth of finance is threatened by certain factors that hamper the functioning of the financial system.
There are different types of jobs in Finance as discussed above. However, the common topics of discussion when looking for a career path in this field are of interest, management and supervision of finance, financial planning and forecasting, regulation of finance and taxes. When it comes to Finance, one of the most popular career paths is Public Finance. In this sector, employees are required to perform risk management, financial research and development, risk transfer, investment banking, management of public funds, collection and payment of federal taxes and regulation of financial institutions.
While working in Finance, you can also choose to pursue specialization areas like Banking, Insurance or Securities. A rewarding career can be had in either of these sectors since finance deals with the money markets. If you enjoy the stock market, then you should opt for jobs in bank deposit banking, treasury bond banking, savings and loans, merchant banking and money management. If you are looking to advance your education in Finance, then it would be in your best interests to opt for an MBA program from a reputed institute or a graduate school specializing in finance.