Sources Of Finance Flashcards
savings
the money kept at a bank
seed capital
money used to start a business
profit
money earned in trade or business after paying costs
sale of assets
transfer of assets from one business to another
bank loan
money borrowed from bank
interest
money charged by bank or organization for borrowing money
investors
someone putting money into organization to make profit / get an advantage
venture capital
money invested or available for investment
corporate bond / debenture
type of loan often used by companies to raise money, paid back over long period of time in fixed interest rates
redeem
carry out promise / pay back a debt
maturity
time when insurance agreement or investment ready to be paid
working capital
money belonging to company with immediate availability for use
credit terms
arrangements made for giving credit
share / stock
part of ownership of company that can be bought by public
to issue shares / to share issue
company makes new shares available
shareholders / stockholders
owns shares / part of a company
receives part of profit, right to vote
ordinary shares / common stock
owner has right to vote & receive part of company’s profit
preference shares / preferred stock
group of shares - receive dividend before they are paid to common stock owners (/not paid at all)
to go public / to float a company
legal process: company goes from being held privately to publicly hold
initial public offering
first sale of shares to the public
to be listed on the stock exchanging
shares on list of stock that are officially binding on a stock exchange
debt factoring
selling unpaid custom invoices (accounts receivable) to debt factoring primary
crowdfunding
get a large number of people to each give a small amount of money in order to provide financing for a business project
