Stocks, Investing, and Laws

Essay by JailahworldUniversity, Bachelor'sA+, March 2004

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If I decided to invest in common stocks as a personal investment it would be with a Full service broker for example, Merrill Lynch which is a firm with full lines of financial services. I would use it for buying and selling, rather a full service broker, who is also the investment banker that sells IPO shares they can also sell to their clients as well. My reasoning for this choice I'd rather have person to person contact someone to talk to that has experience in this to help me out and guide me where I need to go especially If I am new to the investing world. Consultation is a good thing to have, the broker can be an aid for other financial planning issues, estate planning, and tax strategies along with a wider range of investment products, just to name a few.

Sources of long term -term funds debt and equity financing.

Debt financing long term borrowing from sources out side a company. Equity financing use of common stock and/or retained earnings to raise long term funding. Although debt financing often has strong appeal , looking inside the company for long term funding is sometimes preferable . In small companies founders may increase personal investments in their own firms . In most cases equity financing mean issuing common stock or retaining the firms earnings. Both options involve putting the owner's capital to work.

Law in the U.S. originates primarily with the English common law. Its sources in the constitution, state constitutions, federal and state statutes, municipal ordinances, administrative agency rules and regulations, executive orders, and court decisions. Hundreds of thousands of individuals and ten of thousands of businesses file for bankruptcy each year, and their numbers continue to increase. Individuals and businesses file for bankruptcy due to...