How Milken Used High-Yield Bonds to Help Entrepreneurs

The transcript discusses the invention of high yield bonds as a means to fund new companies, contrasting it with traditional venture capital. It highlights the challenges faced by growth companies in 1974 due to banking system limitations and emphasizes the importance of not relying solely on financial institutions for capital. The text also explores the potential of future industries like cable and the significance of investing in talented individuals. Case studies of successful entrepreneurs such as Rupert Murdoch and Ted Turner illustrate the impact of passion and capital in building companies.

What financial tool was invented to help new companies get off the ground in the 1970s?

• Mutual funds

• Savings accounts

• Traditional venture capital

• High yield bonds

Why was it important to have multiple financial institutions rather than relying on a few banks?

• To increase interest rates

• To focus on international investments

• To reduce dependency and risk

• To simplify financial transactions

What event in 1998 highlighted the risks of relying on a few banks for capital?

• The European debt crisis

• The dot-com bubble

• The housing market crash

• The Asian financial crisis

What was a key factor in deciding to support individuals like Rupert Murdoch and Ted Turner?

• Their passion and vision

• Their existing wealth

• Their educational qualifications

• Their financial background

What was the initial rating of industries like cable when they were first emerging?

• Moderate

• Very high

• Low

• High