FINANCING STRATEGIES

Financing Strategies



Financing Strategies

Introduction

A company can raise capital outside of his private savings (cash flow from profit set aside) by mobilizing the savings of other economic agents (especially households) and thus increase its capital (by issuing shares on the market financial). To mobilize federal savings it can borrow from banks (call credit) or use the financial market (by issuing bonds, for example).

Sources

Thus, the two main sources of external financing to the company are the banking system (or indirect financing intermediated) and the financial market (direct funding). Note that since 1985, larger companies can issue commercial paper money market to finance ...