sources of finance for large companies

wild_eyed

im just doing a small paper, for one section i need to talk about sources of finance, and i have googled it and googled it and all i can find is sof for small companies.

if someone in the know could just list the sof' for large companies things like the European Investment Bank i would be greatful.

im not an accounting studnet nor do i study accounting.

cerebus

I don't know much about it, but here are some things you could check out:

Apart from loans, one obvious source for public companies would be equity - a company can dilute the existing shareholders by issuing more stock to the market, with the capital raised being (issued equity * issue price).

A large company can also issue debt - a note that promises some rate of return (and sometimes the option to convert to stock at a given price)

The GEs of the world issue bonds (as I understand it, not quite the same as debt?) to raise capital.

Large companies with good cash flow can finance stuff out of cash flow.

thetis

As far as I can remember the main sources for large companies are:
equity - both ordinary and preferential shares;
bonds and debentures;
loans - both long and short term; and
partnership finance - where two companies in different (or related but non-competing) fields form a strategic alliance and one can use the other for short term finance (uncommon).

Victor

Sale and lease-back and other equity release measures.

Invoice discounting.

Bonds can be secured (agaisnt a specific asset) or unsecured.

Eh, cashflow? That is using favourable credit terms. Shops sell bread today but may not pay the baker for several weeks. A Dunnes Stores favourite.

Leasing instead of buying - many office based industries do this.