Raising Capital: Selling Stock and Borrowing Money - Deepstash
Raising Capital: Selling Stock and Borrowing Money

Raising Capital: Selling Stock and Borrowing Money

Once you've incorporated your business, you'll need to raise capital to get started. This can be done by selling stock or borrowing money. As Ackman explains, selling stock means that you're selling ownership in your company. In our lemonade stand example, Ackman sold 500 shares of stock for $1 each. Borrowing money, on the other hand, means that you're taking out a loan that you'll need to pay back with interest. In our example, Ackman borrowed $250 from a friend.

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If you're new to finance and investing, you might feel overwhelmed by all the jargon and technical terms. However, understanding the basics can help you make informed decisions about your money. In this article, we'll explore the fundamentals of finance and investing using a simple example: a lemonade stand by William Ackman.

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