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Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses.
Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
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Why do firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses.Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Why is trust important to the functioning of the economy?
Without some trust that the loan will be repaid, lending will cease and firms will not be able to borrow to invest in production. Production will cease, or at least slow dramatically.
What do investors do?
Invest or let companies borrow money from you for exchange for stock.
Who are wealthy individuals who invest in new and growing firms?
Angel Investors
How much can you invest in a buffet that you are about to open?
As much as you want, if you either have or can borrow the money to do it.
Is it wise to borrow money from the bank to invest in the stock market?
That is a breathtakingly bad strategy.
What are federally licensed to borrow money from the SBA to invest in or lend to small businesses?
Sbic
What is prime brokerage?
Prime brokerage is the generic name for a bundled package of services offered by investment banks and securities firms to hedge funds and other professional investors needing the ability to borrow securities and cash to be able to invest on a netted basis and achieve an absolute return.
How do investment bankers generate revenues for their firms?
Investment bankers can generate revenues for their firms by the amount of money they bring in from their customers. By bringing in money, the firm will have more to invest.
What may not be indicated by low long-term interest rates?
that consumers want to borrow money to invest
What are Investments created to invest many people's money in many different firms are called?
Treasury Bills
Most of those who invest in startups limit their investing to firms with potentially high returns in a period?
6_12 month
