Finance is a field to study the allocation of investment in terms of Assets (position of the company) and liabilities (owing by the company) over a period of time along with the involvement of risk and uncertainty.

            Definition of Finance is, an art where a person manages its money either of its own or of any company. This money management involves the prices in the market which can be fundamental (Historic) or future value or the expected return a person can get through its investment.

Another definition of Finance; an art for allocating the investment of a person as a company by making a portfolio through which the average expected return could be according to investor’s expectations.

“DON’T PUT ALL EGGS IN ONE BASKET”

            This is the common phrase which indicates that allocation of investment is very necessary in order to minimize or diversify the risk as well as maximize the expected rate of return.