Large companies need a way to reach the savings of the public at large. The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs. There can be little hope of raising the money needed from friends and people we know, and while banks may agree to provide short-term finance, they are generally unwilling to provide money, for long-term projects. So companies turn to the public’ inviting people to lend them money, or take a share in the business in exchange for a share in future interests. This they do by issuing stocks and shares in the business through the Stock Exchange. By doing so they can put into circulation the savings of single persons and institutions, both at home and abroad.
When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead he sells his shares through a stockbroker to some other Saver who is seeki
A. give more money with
B. provide less money with
C. borrow less money with
D. make more money with
Large companies need a way to reach the savings of the public at large. The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs. There can be little hope of raising the money needed from friends and people we know, and while banks may agree to provide short-term finance, they are generally unwilling to provide money, for long-term projects. So companies turn to the public’ inviting people to lend them money, or take a share in the business in exchange for a share in future interests. This they do by issuing stocks and shares in the business through the Stock Exchange. By doing so they can put into circulation the savings of single persons and institutions, both at home and abroad.
When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead he sells his shares through a stockbroker to some other Saver who is seeki
A. exchanged for part ownership in the Stock Exchange
B. raised by the selling of shares in the companies
C. repaid to its original owners as soon as possible
D. invested in different companies in the Stock Exchange
Companies with large scale need a way to reach the savings of the public at large. The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs. There can be little prospect of raising the sort of sums require from friends and people we know, and while banks may agree to provide short term finance, they are generally unwilling to provide money on a permanent basis for long-term projects. So companies turn to the public, persuading people to lend them money, or take a share in the business in exchange for a share in future profits. Thus they do by issuing stocks and shares in the business through the Stock Exchange. Only by doing so can they put into circulation the savings of individuals both at home and abroad.
When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead, he sells his shares through a stockbroker to some other savers who is ear- nest to in
A. depend on their own financial resources
B. invite the banks to provide long-term finance
C. borrow large sums of money from friends and people they know
D. rely on the population as a whole for finance
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