Question
In: Finance
What are the major components of finance?
What are the major components of finance?
Solutions
Expert Solution
Major component of Finance is -
A. Risk- Risk will be one of the major component of finance as risk is a reflecting the all such uncertainty when we are investing into the market
B. Return- Return is one of the Other component of the finance in which the overall return is estimated by the investor before investment into the company.
C. Capital is another important aspect of the overall finance because capital will be leading to overall investment value and it is invested into the markets.
D. financial intermediaries and financial instruments are all such intermediaries which are issuing with a large number of instruments which are offering a chance to invest into the financial market
E. financial market participants are another important component of Finance like institutional investors and the retail investors along with the companies.
F. Regulations and regulatory authorities are another important part of financial system as they will be following up with important regulations while following the Financial Investment.
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