Hubert “John” Nunns
In this paper I am going to discuss the different aspects of funding a business. I will go over the meaning and function of different funding aspects such as an investment banker and financial management. The importance of each of these aspects will also be mentioned. I will the go into my personal decision for funding and discuss why I made that particular decision. I will go over what is good about the type of funding I chose, and then I will tell why this type of funding might not be the best. I will then let you know what my second choice of funding is and why.
Funding a Business
Investment banking is a type of banking that helps companies to acquire funds. In addition to the receiving of new funds, investment banking also helps with advice for a wide range of dealings a company might be involved in (wisegeek.com, 2010). An investment banker is advisor who must be a licensed broker-dealer, and is subject to SEC rules and regulation. (wikipedia.org, 2010) In a client relationship, the investment banker’s role is to pre-underwrite and counsel. This role generally continues in the form of ongoing expert advice and guidance, often including a seat on the board of directors. With investment banking at their core, most investment bankers also carry on broker-dealer operations in which they serve both wholesale and retail clients. (allbusiness.com, 2010) An investment banker would be an important asset representing any growing company, particularly a corporation.
The stock market is a public market for the trading of company stock and products at an agreed price. This is mainly for the raising of capital by selling stock to investors. This can help in the start-up, growth, and expansion. This is an important piece of the business puzzle because it makes the matter of start-up cost virtually nil. With the ability to sell a stock and add a bit more to the total of money available a...