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ID:39392392
大小:277.90 KB
页数:15页
时间:2019-07-02
《Economics - How the Stock Market Works英文资料》由会员上传分享,免费在线阅读,更多相关内容在学术论文-天天文库。
1、HowtheStockMarketWorksWhyDoCompaniesIssueStock?Companiesthroughouttheworldissuenewstockshareseveryday.Butwhatisstock,andwhydoesacompanyissueit?Tohelpyoutobetterunderstandtheseimportantconceptsinthistutorialwewilldiscuss:•WhatisCapital?•Equityvs.Debt•WhyDoCorporationsIs
2、sueStock?•AdvantagesforStockHoldersLetusbeginbydefiningthewordcapital.WhatIsCapital?Let'simaginethatyoudecidetostartupyourownicecreamshopbusiness.Youwillneedtoinvestinequipment,foodsuppliesandproperty.Allthemoneythatyouinvesttostartyourbusinessiscalledcapital.Essential
3、ly,thecapitalofabusinessconsistsofallofitsassets(oritemstoassistinthecreationofwealth).Whatifitdawnsonyouthatyoudon'thaveenoughcashtobuyalltheneededassets?Let'sseehownewbusinessesandcompaniesdealwiththisproblem.TopEquityvs.DebtTostartanewbusiness(orfundanewproject)acom
4、panycanraisemoneyintwoways-bysellingsharesofequityorbyincurringdebt.Iftheownerofouricecreamparlorinvestedalltheirownsavingstobuythematerialsnecessarytostartthebusiness,theymadeanequityinvestmentinthecompany.Equityissimplyownershipofacorporation.Typically,ownershipunits
5、inacorporationarereferredtoasstock.However,ifourownerdidnothavenecessaryfundstostarttheirownbusinesstheycouldfinancetheiroperationinoneoftwoways:1.Issuestock(orcertificatesofpartialownershipinhiscompany)topeoplewhomaybeinterestedinhelpingtheirventureoutinreturnforaprop
6、ortionalshareoftheprofitsthatthecompanymightgenerate.2.Borrowmoneythatwillneedtobepaidbackwithinterest.So,whataretheadvantagesofsellingstock?TopWhyDoCorporationsIssueStock?Businessesissuestocktoraisecapital.Advantagesofissuingstock:1.ACompanycanraisemorecapitalthanitco
7、uldborrow.2.ACompanydoesnothavetomakeperiodicinterestpaymentstocreditors.3.ACompanydoesnothavetomakeprincipalpayments.DisadvantagesofIssuingStock:1.Theprincipalownershavetosharetheirownershipwithothershareholders.2.Shareholdershaveavoiceinpoliciesthataffectthecompanyop
8、erations.TopAdvantagesforStockholdersAspartownerofacorporation,youmaybeentitledtoshareintheprofitsofthecompany.Therei
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