Debt Financing

外汇网2021-06-19 14:10:14 70

When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to inpidual and/or institutional investors. In return for lending the money, the inpiduals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.

|||The other way of raising capital is to issue shares of stock in a public offering. This is called equity financing.

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