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Why is the stock market less important than other sources of financing?
Wiki User
∙ 11y ago
The Stock Market is actually a giant Ponzi scheme. If a CEO gets funding from the market he also subjects his or her company to the manipulations of stock value that take place in the market. Many serious business people willl not expose their company to the possibility that its value could tumble 50% or more in one day due to a rumor, so they look elsewhere for funding.
Yaxye Maxamed
Wiki User
∙ 11y agoThe Stock Market is actually a giant Ponzi scheme. If a CEO gets funding from the market he also subjects his or her company to the manipulations of stock value that take place in the market. Many serious business people willl not expose their company to the possibility that its value could tumble 50% or more in one day due to a rumor, so they look elsewhere for funding.
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What is the single most important reason to run a business in market economy?
Money and other benefits
What are the advantages for a company of expanding beyond its domestic market?
Outsourcing - they can access other sources in other countries (Canada for example has many natural resources - fresh water, mines, etc...) Diversification - they can reach different types of people and different cultures to expand sales (for example, creating a line of sun protection in hot, sunny countries)
Does commodity and equity stock market affect each other?
Yes. Commodity and equity stock market affects each other.
Is cigarette market a perfectly competitive market?
There is no such thing as a perfectly competitive market. It is merely a economic model to compare other market structures to. Cigarette market is more likely a oligopoly.
In a monopoly there is only one seller but other sellers can enter the market?
No; the market has been monopolized.
3 types of financing?
there are internal and external sources of financing. internal sources are things like selling assets such as computers and machinery other internal sources are retained profit and your own personal money. external sources are things like loans, grants and overdrafts.
where can i get financing for a commercial truck?
There are many sources that you could try for financing on a commercial truck. You may consider trying your local bank or credit union to see if they would provide financing for you. If not, you could try contacting Prudential Leasing. They (and other companies) specialize in this type of financing. Their website is http://www.prudentiallease.com/
Colorado other important sources of income?
Colorado has many important sources of income. Important sources of income in Colorado include farming and wintery sports type jobs.
Why are secondary sources important to the study of history?
These sources provide information written by other authors.
What does commercial financing mean?
Commercial businesses are given loans by banks and other sources. When a company is in a state of financial emergency, they will get bailed out if they want to continue running but cannot support themselves.
Are There Any Other Source Of Capital For Small Businesses?
Of course. There are several forms of non-conventional sources of business financing such as microlending program, angel investors, venture capitalists and many other non-bank lenders.
Problems faced by financial services market in India?
less instrument and less new market,instead need of factoring project financing,less effective protection creativity of idea and technology thats all are the problems on market of India.
Examples of short-term financing?
Bank loans and any other form of external financing
What are other sources of thorium?
Important minerals of thorium are: monazite, thorite, thorianite, allanite.
How does owner financing work?
Owner financing is a method of financing a house or other item without using the assistance of a realtor or broker. Be sure to use a bank that is familiar with working with individuals for financing.
Why is it important to match the type of asset and the source of financing?
Matching the type of asset and the source of financing is important because it helps to ensure that the financing used to acquire an asset is appropriate and sustainable over the long term. Different types of assets require different types of financing. For example, short-term assets, such as inventory or accounts receivable, may be better financed with short-term sources of financing, such as a line of credit or trade credit. Long-term assets, such as buildings or equipment, may require long-term financing, such as a mortgage or a term loan. If the type of asset and the source of financing are not appropriately matched, it can result in financial problems down the road. For example, if a long-term asset is financed with short-term debt, the debt may come due before the asset has generated enough cash flow to pay it off, potentially leading to default and financial distress. On the other hand, if short-term assets are financed with long-term debt, it may result in higher interest costs and a mismatch between the timing of cash inflows and outflows. In addition, matching the type of asset and the source of financing is important for managing risk. For example, if an asset is financed with too much debt, it may become difficult to make payments if there is a downturn in the economy or the company's cash flows decline. Overall, matching the type of asset and the source of financing is an important consideration for any business or individual looking to acquire assets and finance them in a sustainable and appropriate way
What reasons would be considered important for civilzations developing ariund rivers and other water sources?
transportation
