What's finance?

There can be many different concepts of finance but I’ll present concept of finance in finance theory textbook of Academy of finance, where I’ve studied.

Concept: “Finance is movement of money capital, happen in any entity in society. It reflects whole of economic relationship that arise in distribution of financial resources through create and use monetary funds to satisfy different need of entities in society”.

The financial concept above gives us comprehensive view of finance. This concept both shows particular - outside form of finance is financial resources, monetary funds and clarifies abstract - inside essence of finance is economic relations in distribution of financial resources, distribution of social wealth in value form.

To understand clearly financial concept above, we need to clarify some terms: “Financial resource”, “Monetary fund” and “Financial relationship”.

Financial resource is financial ability that entities in society can exploit, use to perform their purposes. Financial resources can exist such as money form, material assets or immaterial assets. Movement of financial resources reflects movement of parts of social wealth in value form. Financial resource always shows an ability of certain purchase. Result of the distribution of financial resources is establishment and use of certain monetary funds.

Monetary fund is a certain amount of financial resource, have been mobilized to use for a specific purpose. Monetary funds, formation and use of them has characteristic:
First, monetary funds always express ownership relations. At the end of a movement phase of fund, each entity of this ownership form or other will get themselves a part of financial resource. To use of monetary funds also depends on ownership as well as depending on convention, principle to use fund, subjective will of owner in process of distribution.
Second, monetary funds always express purpose. This is main feature of monetary fund. Most of monetary funds have final use purpose to accumulate or to consume.
Third, all of monetary funds are movement frequently, it means they are always used and supplemented.

Financial relationship is relation between economic entities in society in distribution of financial resources, distribution of social wealth in value form.

I hope that what I described above will help everybody has full view about concept of finance.