CAPITAL and FUNDs

When you want to initiate a business, the first thing that goes inside your mind is the funding. You might have zero funds or not enough to buy your items such as tools, devices, raw materials, machines and the like. So what you do is to go to the bank or any creditors to borrow money to do the necessary buyings of materials. But in a bank, they have a policy that you will have to pay interest in return besides the principal amount which to me is unfair. An alternative what the business man do is to get money (funds) from the public by selling shares. Actually shares are just like asking money from someone in a form of nice word like investment or buying share. Nobody is going to lend you money if you ask them. So in order to make it looks nice and legal, shares are issued. So these shareholders expect money in return after the business operates i.e. profits or dividends. These dividends are burdens to the business man because he has to pay some amount of money to the shareholders which in fact the money they give are stagnant and is not increasing yearly. But bear in mind the operating costs are not always constant.


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