loans from banks are the most important external source of funds to business because most important external source of funds to businesses because most businesses are too small to borrow in financial markets by issuing stocks or bonds. most investors are reluctant to buy the stocks or bonds of small businesses because of the difficulty of gathering accurate information on the financial strength and profitability of the businesses. nevertheless news about the stock market is included in nearly every network news program and is often the lead story of the business section of most newspapers. is there a contradiction here ? why is the average viewer of tv news or the average reader of a newspaper interested in the fluctuations in prices in the stock market?