Finance is the process of channeling money from savers and investors to entities that need it. Savers and investors have money available which could earn interest or dividends if put to productive use. Individuals, companies and governments must obtain money from some external source, such as loans or credit, when they lack sufficient funds to operate. Finance deals with how and why an individual, company or government acquires the money needed – called capital in the company context – and how they spend or invest that money.
