Stocks, along with bonds, are one of the primary ways that companies raise money to operate and expand their businesses. Stocks provide a partial ownership in a company. This allows stock investors to benefit from growth of the company over time. The biggest driver for company growth is often a growing economy or favorable industry conditions. As a result, stocks typically make a good investment for investors wishing to benefit from a growing economy or improving economic conditions.
After completing this chapter, the student should have an understanding of
• Equity and debt financing
• Corporations ...