The meaning, function and importance of the four elements in the business world (investment banker, stock market, financial management, and risk financing) are presented in this paper. The author presents the pros and cons of various methods to fund the start-up of a business. In case the original plan fails, a backup plan discussing the option of borrowing money is discussed. The paper concludes with information about the Small Business Administration (SBA) that can help individuals thinking of becoming an entrepreneur.
Funding a Business Venture
Investment bankers are individuals who are responsible for underwriting securities of a company. I have discovered that investment bankers manage the issuance of bonds and counsel their clients on high-level issues of financial organization. They also propose and complete strategies for acquiring and merging with other companies, and manage the selling a company’s stock. In my opinion, this profession is very important in that, generally speaking, investment bankers are crucial figures in shaping American and world economies, along with the success of one’s personal business. (Investment Bankers)
The stock market, also known as equity market, is a public unit for the trading of securities of companies among other companies and individuals. The shares are listed on a stock exchange, as well as the shares privately traded. The stock market is one of the most important sources for firms to raise capital by allowing companies to be traded publicly or raise additional funds for development by selling shares in the public market. (Ebert, 2009)
Financial management is, simply declared, the way one budgets their money and/or finances. One who manages the finances of a company makes estimations on capital requirement, decides on capital structure, finds sources of funding, etc. It is very important to have a trust-worthy financial manager, as they are responsible for the funds and success of the.