The Different Types of Funding Options
Essay by Joe • August 8, 2011 • Essay • 487 Words (2 Pages) • 1,657 Views
Explanations of the different types of funding options are described here in this paper. Along with my personal preference for funding options I.E. the Stock Market and Investment Bankers.
Intro. To Business
Broadly investment bankers (investment banking firms) perform three functions, Investigation, Analysis and Research (Origination), Underwriting (Public Cash offerings) and Distribution. Most of time a single investor banker performs all functions, however some investment bankers are specialized in certain functional areas only. From the way an investment banker works, it sounds to me like it could be a lazy way of handling your investments, investing and your cash flow. If given the right skill set, and Investment Banker could turn your zero cash flow into millions, or the opposite.
The Stock Market is the market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance.
If wisely invested and played correctly the stock market can be a very gainful attempt. If wisely investing, you must look into the future, and the past. A wise investor knows market fluctuations and can call them for future reference.
Area of management concerned with planning, administration, and control of use of resources (property as well as funds) in monetary terms. Financial management should not be taken lightly. This is where your monetary funds come into play. You need to have your assets in order to know your current financial status. You use financial management to correctly monitor your funds available. You need to manage what money is going out, I.E. funds to replenish stocks and merchandise, and funds coming in from goods and services issued.
In business economics, risk financing is concerned with providing funds to cover the financial effect of unexpected losses experienced by a firm. Risk financing is more or less a back up plan incase the original plan falls through, or unexpected fluctuations in the current market, robberies, and the like. Risk financing can be a gainful option, or a risky option.
My chosen method of funding would probably be the stock market, as shifty as that sounds. The risk involved is greater than other options, but the rewards for playing it right, can be out of sight and found a lot faster than other options available. The stock market could either make or break you. There are plenty of safer options available, but with great risk comes great rewards.
An Investment Banker can also tie in with the stock market. The banker could guide you through certain market decisions, as well as project the
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