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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 852 |
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When corporations borrow money, it is usually to finance operations or inventories. “If a company is in good financial health, it can raise capital by issuing common stock. Typically, investment banks help companies issue stock, agreeing to buy any new shares issued at a set price if the public refuses to buy the stock at a certain minimum price...
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The capital markets include securities such as government bonds, corporate bonds, preferred stock, convertible securities, and common stock. These long term securities consist of the corporation’s capital structure and are found under long term liabilities and equities on a balance sheet. Bonds are debt means that have a fixed life and must be paid back at maturity...
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