Financing Your Business

Topics: Finance, Bank, Corporate finance Pages: 3 (988 words) Published: June 20, 2012
Introduction to Business
Rebekah Benson
Maria Scioneaux
American Intercontinental University
Financing Your Business

Finances can be described in many ways. Throughout life we all use finances in some type of way. Whether it’s loaning money to a friend or borrowing money from the bank. Without financing we would not be able to complete most of the things that we need to do in our day to day life. It plays a very important role. There are many different ways to financing your own business. Whether you use the stock market, an investment banker or any of the numerous other organizations that are made available to you. What are the risks involved with using an investment banker? What is the stock market? What is financial management? I will explain the different kinds of financing are available, and which is the best possible option when financing your own company.

Risk Financing
Risk financing is used to describe the consumption of resources that occurs when a company sustains financial losses while conducting business. The financing involves securing resources that can be used to offset the losses. It also allows the company to manage the losses without impacting the day to day operation of the business. There are several different ways that risk financing is managed: which include the establishment of reserves set aside for this type of issue, sharing the risk with a third party, or even obtaining insurance that effectively transfers the risk to an insurance provider. Investment Banker

An individual or institution that acts as an underwriter or agent for corporations and municipalities who is issuing the securities is what defines an investment banker. They also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. They are...
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