MIS ep. 2 || Why companies need investors?
Hello everyone. In the last blog, we discussed the purpose of this blog series and how it can help you understand the Equity investment better. If you have not read that blog, I will highly recommend you to read it before reading this blog as it will help you to know what's there for you in the series. You will find that blog here: A millennial friendly guide to Equity Investments. In this blog we are going to learn about: How a new business starts. Who are promoters in a business. The concept of face value. What are shares of a company. Why companies need to raise capital (or money). Different ways for a company to raise capital and expand its business. How a business starts: Let's understand the share market through the story of a boy named Raghu who lives in a small town and has opened a new lemonade stall. For this business he has invested 2,00,000 rupees. He names his business 'Lemonadewala'. Since Raghu has started this business, he is called the promoter of thi...
