Raising capital for a firm

In business, apart from the business of making money, the next hardest part is getting the necessary capital to start it in the first place. For a firm, there are 4 sources to find capital.

1. Equity market - investment from shareholders is the first port of call for any firm;
2. Banking system - firm can borrow money from banks;
3. Bond market - firm can issue bonds to investors
4. Private sources - any sources that is not from the first 3 listed earlier.