shareholders people who own at least some shares of stock in a firm

shares a firm's stock, divided into individual portions

simple interest an interest rate calculation only on the principal amount

sole proprietorship a company run by an individual as opposed to a group

stock a specific firm's claim on partial ownership

Treasury bond a bond issued by the federal government through the U.S. Department of the Treasury

venture capital financial investments in new companies that are still relatively small in size, but that have

potential to grow substantially

Key Concepts and Summary

17.1 How Businesses Raise Financial Capital

Companies can raise early-stage financial capital in several ways: from their owners’ or managers’ personal

savings, or credit cards and from private investors like angel investors and venture capital firms.

A bond is a financial contract through which a borrower agrees to repay the amount that it borrowed. A bond
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