What is the importance of finance companies?
The flow of finance starts on Wall Street with the creation ofcapital used to fund business through the issuance of common stockto provide capital, bonds to lend capital and derivatives (packagedgroups of securities that help to hedge against financial risk andreplace the money banks lend out to borrowers). Public companiesand municipalities use this capital to help fund their operations,and banks use it to lend to companies, municipalities andindividuals to finance the purchase of goods and services.
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