Stock markets are a convenient way for businesses to raise


Stock markets are a convenient way for businesses to raise capital. However, they are not the only way in which businesses can obtain money and, in fact, they might not be the best way in some situations. Describe two information problems stock markets face and how banks might resolve these problems. If you were the founder of a small start up, would you want rather obtain capital from the stock market or a bank?

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Business Management: Stock markets are a convenient way for businesses to raise
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