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Capital markets has mostly two* components : Stocks and Bonds Investors don't need to own part of a company to buy a Bond, they just want to see good credit ra
by throwaway7ahgb 2y ago
Capital markets has mostly two* components : Stocks and Bonds
Investors don't need to own part of a company to buy a Bond, they just want to see good credit rating and yield.
*VC is also part of capital markets but mostly private and such a small % of global investment.
- nradov 2y agoNew companies have no credit rating. Investors would never buy bonds sold by a new cooperative that needs a huge amount of capital to build a new semiconductor fab or something.