In one way or another, business activity must be financed. Without finance to support their fixed assets and working capital requirements, businesses could not exist. There are three primary sources of finance for companies:
● a cash surplus from operating activities ● new equity funding ● borrowing from bank and non-bank sources. Non-bank sources are mainly investors in
the capital markets who subscribe for bonds and other securities issued by companies.
New equity funding always should be available, at a price, to companies that can provide a good economic argument for wanting to raise money.