How business companies infuses capital in their growth?
Business and making profit out of it is an art. It can be small or big but what drives it is the idea behind it, stake holders, management and employee. Business models have changed over the year. Earlier the capital infused into the business used to be that of the owners themselves. This restricted the size of the business small as compared. Since this was the individual capital or landed out from some investor the size of business and the ownership was distributed. Likewise the capital requirement was always an issue in getting the business to heights. If you don’t have proper input to your business it will not expand as desired.
Initial Public Offering
Then came the concept of public offering. Public offering is the concept by which a business register itself in any registered stock market and allow public to purchase its share. These share were huge in volume and price was decided keeping in mind many factors around the same. This was an opportunity for the public as well to buy out the hot stocks in the market and sell it when it earns profit. The prices of the stock then is decided by many factors like company growth, policies and demand and supply equilibrium. All these factor moves the company stock movement. The main benefit business companies started to realize through this is that the owner ship of company would be help by them as the offering to public would be less than 50% and also they would get a huge capital for the business growth. This also increases the number of stake holder in their process which are now involved with them.
Other services on trading
People are also quite interested in buying out the stocks from the companies. That is the reason we started seeing many offering on this started itself as business. Now using their service you can do a swing trading to have an ultimate stock alerts for yourself. This services make sure that the user buy a stock at a right time and sell it back when the profit is maximum. The companies also on the other hand some time shares the dividend of profit to the customer based on the profit made by the organization over a period of year. This all starts an ecosystem of investment and profit which both consumer and companies share with each and other and enjoys the profit with the same.