Finance

The definition of financing is a process of providing funds for business activities, making purchases and investments. Financial institutions can provide funds for companies and individual to purchase their products and achieve their goals. So financing plays a driver key of  any economic systems. There are two main types of financing  tools for companies: debt and equity. Equity financing means that companies' shareholders sell part of their ownership to attract new shareholders, while increasing the total equity financing. Moreover, debt financing means a company sell bonds to individual or institutional investors to increase their capital. Their relationship is bidirectional. It is called equity financing from the perspective of borrowers and called debt equity from the perspective of investors Alibaba is valued at $470 billion after eight rounds of financing, which is a classic successful project that ma d e Alibaba become one of Fortune Global 500 companies. In...

Shareholder primacy  is a theory of corporate governance, which believes that the interests of shareholders should be put in the first place compared with the interests of stakeholders. For example, shareholders make decisions directly on the company, hold regular board meetings and so on. The shareholder preference rule was originally used to solve  the modern doctrine of minority shareholder oppression. But it turned into the oppression of minority shareholders. The principle of shareholder first has been criticized as inconsistent with the company's social responsibility and other legal obligations because it only focuses on maximizing the interests of shareholders General electric (GE), which has struggled with its acquisition of A lstom power business, is a combination of businesses that need to be constantly shuffled as it pursues profits. As a result, GE's bosses seem to have prioritised chasing excitement in the capital markets over labouring to improve the under...