Running Head: ROLE OF THE U.S. FINACNIAL SYSTEM

Role of the U.S. Financial System

Corporations have the need to raise capital for a number of reasons. Smaller firms need capital to start up operations. Larger firms need capital to expand operations and to finance inventory. There are various ways in which a firm can raise capital through the financial system and numerous individuals and entities that can assist a corporation in this crucial venture.
Start-up firms and small businesses petition investors for what is known as venture capital. Venture capital comes from wealthy investors, usually a group, who see the potential for growth in smaller businesses. In the early 1990’s the Securities and Exchange Commission (SEC) expanded its role to assist small businesses. The SEC made it easier for small businesses to raise capital through public stock offerings (Iannaconi, 1993).
Corporations also raise money to finance debt. Businesses sell bonds to investors......

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Title: Us Financial System
Approximate Word Count: 648
Approximate Pages: 3 (250 words per double-spaced page)

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