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finance or economics ?

cfwcool555cfwcool555 Registered User Posts: 2 New Member
edited June 2007 in Business Major
i was doing research about undergrad B school online. i checked the ranking of finance but there arent that many top schools on it. and theres a note saying that good education can be found in good econ majors in schools like UChicago. so i just wanna know what is exactly the difference between the two majors?
Post edited by cfwcool555 on

Replies to: finance or economics ?

  • sophomore12sophomore12 Registered User Posts: 1,095 Senior Member
    Finance is more practical versus Economics is more theory... Finance is like applied mathematical version of Economics... the true difference is vast and I'm incapable to explain it...
  • redhare317redhare317 Registered User Posts: 1,449 Senior Member
    ^is generally correct. The "true difference" is that they're actually completely different fields of study altogether. You use some economics in finance and some finance in economics, but you're emphasizing different aspects.

    Think about it like this (2-word [over]simplifications):

    Accounting: debits and credits
    Economics: supply and demand
    Finance: risk and return
  • evo9evo9 Registered User Posts: 218 Junior Member
    good post redhare.... That is a great way to sum up what each field is all about.
  • naurunauru Registered User Posts: 1,158 Senior Member
    Yep, good short description.

    I'd like to also add, within finance there are very different areas.

    Corporate finance: closely related to accounting.
    Financial markets: closely related to economics.
    Theoretical finance: closely related to math and mathematical economics.

    It is common for finance students to find one area very interesting and another horribly boring. Which is which depends on the person.

    Within economics there are different areas too.

    Microeconomics: supply and demand, with reference to individuals, households, firms and industries.
    Macroeconomics: supply and demand, with reference to countries, monetary systems, international trade and international organizations.
    Econometrics: closely related to statistics and math.

    Again, it is common for economics students to love one area while disliking one or more of the others.
  • hockeydude68hockeydude68 Registered User Posts: 52 Junior Member
    redhare and nauru, great posts, thanks!
This discussion has been closed.