Funding a Business Venture

Topics: Finance, Investment, Corporate finance Pages: 3 (857 words) Published: August 21, 2010

Funding a Business Venture
By
Ericka Smith-Williams
American Intercontinental University
July 30, 2010

Abstract
Investment Bankers, Stock Market, Financial Management, and Risk Financing all play a role in funding a business venture. This paper will discuss what and why investment bankers, stock market, financial management and risk financing are important to businesses. This paper will also talk about what form of funding is best to use and why.

Funding a Business Venture
Funding a business venture takes some smart thinking and good strategies. When running a business you need to understand how to make the best decisions for your company’s benefit. Funding a business is crucial to decision making, because there are several ways to fund the business. You can sell stock, borrow money or license the technology. Investment bankers are the underwriters or agents that serve as the intermediary of issuer and the investing public. Investment bankers make outright securities from the issuers and distribute them to dealers and investors. Investment banking deals with decisions and techniques the deal with the ins and outs of company’s finances and capital. Basically investment bankers are bankers that give expert advice and guidance. The majority of investment bankers maintain broker-dealer operations. They are usually wholesale and retail client brokerage and have advisory capacities. The stock market it a public market for trading of company stock and derivatives. Stock markets are important to companies because it’s a good source for raising money for businesses. Businesses are allow to publicly trade or raise additional capital for expansion by selling shares of ownership of a company in a public market. Investors in the stock market may take or move financial prices away from their long term aggregate price tends this may only happen temporarily. If a newly own business owners has little knowledge about the stock market, it can be quite unforgiving....

References: INVESTMENT BANKER. (2006). In Dictionary of Finance and Investment Terms. Retrieved from http://www.credoreference.com/entry/barronsfin/investment_banker
Stock exchange or stock market. (2006). In Collins Dictionary of Economics. Retrieved from http://www.credoreference.com/entry/collinsecon/stock_exchange_or_stock_market
Financial Management2006). In Collins Dictionary of Business. Retrieved from http://www.credoreference.com/entry/collinsbus/financial_management
entrepreneurship. (2003). In The New Penguin Business Dictionary. Retrieved from http://www.credoreference.com/entry/penguinbus/entrepreneurship
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