Section 1
Types of Financing
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
4 concepts
Financing Life Cycle of the Firm
Firms progress through four stages of a developmental life cycle, each with their own funding needs.
Venture Capital
Venture capital is an equity investment in a new company.
Long-Term Debt
Long-term debt is a means of financing that allows firms access to capital without diluting equity; capital & interest is paid off over time.
Common and Preferred Stock
Firms may raise capital by receiving funds from investors in exchange for equity stakes in the form of common and preferred stock.