The main components of finance can be broken down into three primary areas: 1. Investment: Investment decisions involve selecting the most suitable assets to generate returns from investing. This includes selecting stocks, bonds, mutual funds, derivatives, and more. 2. Capital Budgeting: Capital budgeting is the process of estimating the size of a project and evaluating the returns from investing in it. This includes the process of deciding which projects have the best return on investment. 3. Financial Management: Financial management is the process of managing the finances of a company. This includes budgeting, creating financial statements, issuing bonds and other debt instruments, monitoring cash flow, and more.