∂ SiteMap ~ Written

 I. How companies raise money

  A. Get money it does not have to return (i.e. Equity Financing)

    i. Full Ownership vs. Shared Ownership

      a. Car being co-owned illustration of Shared Ownership

      b. Baseball cards being owned illustration of full ownership

      c. A stock share being owned - Shared Ownership

      d. A similarity - the Capital Gains idea

      e. Differences between Shared & Full Ownership (e.g. risk, liquidity, profit sharing, etc.)

  B. Get money it has to return (i.e. Debt Financing)

    i. Bonds akin to bank loans illustration

      a. Similarities & Differences

  C. They make money, of which, some is retained for future use or distribution (dividends).

    i. A company typically handles the money it makes in two ways: It either retains the money to reinvest in the business or gives some of it out to shareholders as dividends.