In finance, investment means putting money or effort into an asset in hopes of its appreciation. An investment requires a current asset to be sacrificed, such as time, money, or effort, in exchange for a future asset. The investment is typically a long-term investment that will continue to increase in value over time.
Personal finance encompasses banking activities, such as checking and savings accounts, as well as mobile and online payment services. Meanwhile, corporate finance involves the financial activities of a corporation. A corporate finance department oversees all of these financial activities, such as making investments. For example, a large company may decide to issue stock or bonds to raise additional funds. Investment banks advise these companies and help them market their securities.
Those who pursue a career in finance will learn the principles of finance, such as how stock prices are calculated, and why investments make money. In addition, they will develop a solid understanding of investment strategies and how to structure portfolios for different objectives. As a result, they can be better prepared to make financial decisions for their future.
Students studying for a degree in finance and investment will develop transferable skills, which are essential for a successful career in the industry. They will learn investment analysis and risk management, and will be equipped to obtain the Level I Chartered Financial Analyst (CFA) qualification upon graduation.