In today's era every business students want to know What Companies are in the finance field? However the subject of Finance has been evolving since traditional era to the present modern era very fast. As the tasks which was earlier carried by individuals for businessmen has transformed and due to the involvement of complex aspects and high demand various entities has came forward and formed a company.
Today you will be able to identify the different types of functions offered by finance companies as well as what are the different types of companies, which are functioning in the financial sector.
Finance Company
A firm registered as Company is a specialized institution or corporation which is offering a wide range of financial services and products, including loans, credit, leasing, investment, insurance, and other financial instruments.
These companies may focus on specific niches within the financial industry, such as :
Customer finance
Business (Commercial) finance
Two-wheeler or Four wheeler even commercial vehicles including LMV(Light motor vehicles) and HMV (Heavy motor vehicles) financing
Equipment leasing e.g excavators,cranes,laser levelers in agriculture etc.
Finance companies act as intermediaries between borrowers and lenders, helping to channel funds from savers and investors to borrowers in need of capital.
Functions of Finance Companies
The above diagram is showing some of the major functions which are performed by the finance companies,however there are certain more:
Factoring
Asset Leasing
Risk Management
Payment Processing
Regulations governing finance companies
The government makes regulations for the finance companies operating in the economy,the finance company has to adhere the guidelines and regulations issued by the central government of the country in which they are functioning.
The sole purpose of such regulation is to protect consumers,ensure financial stability in the economy which attracts the FDI & FIIs and safeguard the financial system's integrity.
Types of companies and institutions that operate in the finance field
The above image is showing some of the major companies which are functioning in financial sector,however some the other types of finance companies are as follows :
Real Estate Investment Trusts (REITs)
Credit Unions
Venture Capital Firms
Pension Funds
Stock Exchanges
Conclusion
These are only a few examples of the many companies and institutions involved in finance. The finance business is crucial to the global economy since it provides essential financial services while also promoting economic growth.
FAQs
What is Mutual Fund Companies ?
Mutual fund firms provide mutual funds, which pool money from different participants and invest it in a diverse portfolio of stocks, bonds, or other securities. T. Rowe Price and PIMCO are two examples.
What is Real Estate Investment Trusts (REITs) ?
REITs are corporations that hold or finance income-producing real estate in a variety of industries, including commercial and residential buildings. Simon Property Group and Equity Residential are two examples.
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