Financial Supply with the Stock Exchange



It is thank to a stock exchange issued companies' alues may gain their sufficient liquidity, allowing investors to enter or quit a market in any moment. Due to the stock exchange capital market competes with banks, which generally results in lending the same amount of money with the different type of risk. Banks, despite the long strivings, may not however deliver the money, or relatively ask for the immediate repayment of the offered credit. Emission of the stock shares may not bring sufficient income, and a requirement to reveal the financial transactions may impede company's work. Apparently the risk of so called hostile overtaking or loss control over a company is relatively easy to avoid by the special notes in the company's status. Practically, their introduction doesn't have any impact on the price of the issued shares. Talking about the selection of the supply resources (bank or capital markets) firms choose what is easier to access. In Poland, as everywhere in the world, loans have certain advantage, which nevertheless can be smaller than alternative resources of supply.