From the course: Finance Foundations

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Finance outside of companies

Finance outside of companies

From the course: Finance Foundations

Finance outside of companies

Let's think about all the economic activity in the world as a sea, an ocean, with three kinds of players swimming around in that ocean. First, there are the entrepreneurs, the creators, the doers, people and organizations with ideas, objectives, and dreams. There are also investors swimming around out there. These are entities, individuals, companies who have saved money in the past and are now ready to lend it or invest it in somebody else. Finally, there are facilitators swimming around out there. These are specialized institutions who will match up the entrepreneurs, who have ideas but don't have money, with the investors who've got the money. So in the economic environment, outside of companies, we've got entrepreneurs, investors, and facilitators. Let's think about the economic environment outside those companies in the rest of that economic sea. What about those investors and savers? What are they thinking about? They're looking at their investment opportunities. Under what…

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