Financing a Small Business

Starting a new business can be a very exciting and scary event but what can make things somewhat easier is when there is a solid plan for financing in place. There are several options that an individual can choose when deciding but the choice comes down to what is most beneficial to them. Borrowing money, selling stock in the new company, or licensing the technology are ways that the owner may choose to finance.

FINANCING FOR THE NEW 3

FINANCING FOR THE NEW SMALL BUSINESS OWNER

Investment bankers are individuals that sell and trade stocks and bonds on behalf of a company or the government. Their job involves investigating, analyzing, and researching stocks, bonds, and securities. This is important because without the authorization of the investment banker larger companies are unable to obtain authorization to issue, trade, or resell their stocks.

The stock market is a public trading place where individuals or companies can trade stock. This is a global network that shows the public the price of each stock. The stock market is important because it provides a central place where all companies, investors, and general public can view and trade stocks.

Financial management is a company’s ability to manage their own finance themselves or with the help of a financial institution (Corr, 2012). The financial management given by professionals provide awareness for people regarding the importance of their finances.

Another way of saying risk financing could be “saving for a rainy day”. Risk financing is when people save money and assets

FINANCING FOR THE NEW 4

for future problems that may arise within the company. This allows a person to be prepared in