Financial markets influence business investment decisions from "summary" of Macroeconomics for Business by Lawrence S. Davidson,Andreas Hauskrecht,Jürgen von Hagen
In the world of business, financial markets play a crucial role in shaping investment decisions. Businesses rely on financial markets to raise capital for their operations and expansion plans. When businesses need funds to invest in new projects or upgrade their existing infrastructure, they often turn to financial markets to secure the necessary financing. Financial markets provide businesses with a platform to access a wide range of funding sources, including equity and debt. Equity markets allow businesses to sell ownership stakes in exchange for capital, while debt markets offer loans and bonds as sources of financing. By tapping into these markets, businesses can raise the funds needed to fuel their growth and development initiatives. The decisions made by businesses regarding their investment plans are heavily influenced by the conditions prevailing in financial markets. For instance, the cost of capital, which is determined by interest rates and other market f...
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