Obtaining Capital

What are the two main ways to obtain capital?

• Angel investors and venture capital

• Savings and loans

• Crowdfunding and grants

• Debt financing and equity financing

Where can you obtain capital from?

• Borrowing from friends

• Credit cards

• Selling personal belongings

• Investors, loans, grants, crowdfunding, personal savings

What is the money market?

• The money market is a place to buy and sell physical currency

• The money market is only accessible to large corporations

• The money market is a segment of the financial market where short-term borrowing and lending of funds occur.

• The money market involves long-term investments

What is the capital market?

• A place where fruits and vegetables are sold

• A type of computer software

• A financial market where individuals and institutions trade financial securities.

• An amusement park for children

How do money market and capital market differ?

• Money market focuses on short-term debt securities, while capital market focuses on long-term securities like stocks and bonds.

• Money market deals with physical currency, while capital market deals with digital currency.

• Money market focuses on long-term debt securities, while capital market focuses on short-term securities like stocks and bonds.

• Money market is regulated by the government, while capital market is unregulated.

Why is obtaining capital important for businesses?

• Obtaining capital leads to increased competition

• Capital is only needed for personal expenses

• Capital is essential for business growth, innovation, and sustainability.

• Businesses can thrive without any capital

What are some examples of financial instruments in the money market?

• Corporate bonds, municipal bonds, preferred stocks

• Treasury bills, commercial paper, certificates of deposit, repurchase agreements

• Derivatives, mutual funds, ETFs

• Real estate, cryptocurrencies, precious metals

What are some examples of financial instruments in the capital market?

• stocks, bonds, mutual funds, ETFs, options, futures

• antiques, collectibles, art

• real estate, commodities, cryptocurrencies

• savings accounts, CDs, money market accounts

How can individuals and businesses access the money market?

• By opening a long-term savings account

• By investing in short-term debt securities or participating in money market mutual funds or accounts.

• By investing in high-risk stocks

• By borrowing from friends and family

How can individuals and businesses access the capital market?

• By issuing stocks or bonds, participating in IPOs, or investing through brokerage firms.

• By baking cookies

• By learning a new language

• By skydiving