While most people think of equity in terms of common stock, the equity claim can take a variety of forms, depending partly upon whether the firm is privately owned or publicly traded, and partly upon the firm's growth and risk characteristics. Private firms have fewer choices available than do publicly traded firms, since they cannot issue securities to raise equity. Consequently, they have to depend either upon the owner or a private entity, usually a venture capitalist, to bring in the equity needed to keep the business operating and expanding. Publicly traded firms have access to capital markets, giving them a wider array of choices.

Lessons From The Intelligent Investor

Lessons From The Intelligent Investor

If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving the annual savings rate by people has started to recover a bit.

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