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Finance refers to a number of different fields within the financial service industry. Financial services are the core economic services offered by the finance industry and encompasses a wide assortment of companies that deal with money, such as banks, credit unions, credit card firms, investment banks and mortgage companies. Finance is an important part of business, and without it businesses would not be able to exist. Without finance, businesses would be unable to meet their financial obligations. As with all aspects of business, finance has evolved over the years and there are many different types of finance including insurance, lending, property management, risk management, pensions, accounts receivable and banking.

The modern day financial services sector is complex and diverse. In fact, in some regards it is impossible to describe every aspect of the industry. However, as previously mentioned financing refers to a number of different disciplines including banking, insurance, pension, investment banking, private lending and wholesale financing. All of these are essential for the smooth running of a business, and some are essential to the development of the economy. In order to understand how each discipline affects the economy you must first break it down.

Private lending can be thought of as the investment arm of the finance industry. Most banks and other large lenders operate through private equity. Private equity represents a large portion of total financial services sector profits. Private equity companies are mainly interested in raising long-term capital for small businesses, and they will often purchase companies that are already profitable.

The largest portion of the financial services industry is represented by international banks. Many international banks provide financial products and investment options to individuals and businesses in foreign countries. Examples of international banks include: HSBC, Citibank, Morgan Stanley, Goldman Sachs, JP Morgan Chase, Prudential Bank and many more. Foreign investment banks also play an important role in the international finance industry; however most are based in Europe or Japan.

An important segment of the finance industry is the commercial banking sector. This sector provides a variety of financial products to individuals and businesses in the United States and around the world. Examples of commercial banking products offered by these financial institutions include: checking, savings, money market, CD’s, mortgage loans and more. A great deal of the financial services industry is housed under the umbrella of commercial banking; therefore any institution that offers a variety of financial products and services is a part of this industry.

The money management and investment industries make up the second largest segment of the finance industry. Investment banking refers to the practice of managing the funds of individuals, businesses, and the government. Money management deals with the process of creating financial strategies and planning. As a whole, money management involves the process of creating a number of financial strategies to achieve specific goals. It is the practice of managing the funds of an organization in an efficient manner.

Another major part of the finance industry is stock markets. Stock markets are an establishment that houses a variety of different financial transactions, such as: shares, options, bonds, commodities and more. The stock market also includes a number of stock exchanges. Financial institutions are required to open and maintain a number of different stock exchanges throughout the United States. These stock exchanges allow for the trading of stock for the purpose of buying and selling shares among various companies.

Last but certainly not least, the financial services industry also includes the health care industry. Health care includes, but is not limited to, medicine, nursing and other health care related services. An example of this would be medical tourism where people from foreign countries to travel to the United States to receive health care. Another service that falls under the health care category is food preparation and retailing. There are a number of other services, however the ones listed here are some of the most important.