From the course: Finance Foundations
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Finance outside of companies
- Let's think about all the economic activity in the world as a sea, an ocean, with three kinds of players swimming around in that ocean. First, there are the entrepreneurs, the creators, the doers. People and organizations with ideas, objectives and dreams. They're swimming around out there in that economic sea. There are also investors swimming around out there. These are entities, individuals, companies, who've saved money in the past, and are now ready or lend it or invest it in somebody else. Finally, there are facilitators swimming around out there. These are specialized institutions, who will match up the entrepreneurs, who have ideas, but don't have money, with the investors, who've got the money. So in the economic environment outside of companies, we've got entrepreneurs, investors, and facilitators. With respect to the entrepreneurs, who are creating and operating companies, we've already talked about the financial issues inside companies. Entrepreneurs need to decide what…
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