Buy custom Funds flow through the financial system from surplus entities to deficit entities in various ways. For example, funds may flow via financial intermediaries or through equity markets or through debt markets. How do you account for the existence of ...
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1145 |
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Although there is a big attractiveness to this type on investment, there is a down side. Equity markets are more risky, being, there is a chance that the business you are investing in may collapse or turn insolvent, if this were to happen, the shares or equity purchased in that company would virtually disappear...
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This way, the business does not have to source funds in the debt market but can source funds internally.
Surplus entities (lenders) include households, companies, the government and the rest of the world. Deficit entities (borrowers) includes households, companies the government and the rest of the world...
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Funds flow through the financial system from surplus entities to deficit entities in various ways. For example, funds may flow via financial intermediaries or through equity markets or through debt markets. How do you account for the existence of ...
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