Companies with large scale need a way to reach the savings of the public at large. The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs. There can be little prospect of raising the sort of sums require from friends and people we know, and while banks may agree to provide short term finance, they are generally unwilling to provide money on a permanent basis for long-term projects. So companies turn to the public, persuading people to lend them money, or take a share in the business in exchange for a share in future profits. Thus they do by issuing stocks and shares in the business through the Stock Exchange. Only by doing so can they put into circulation the savings of individuals both at home and abroad.
When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead, he sells his shares through a stockbroker to some other savers who is ear- nest to in
A. repaid to its original owners as soon as possible
B. raised by the selling of shares in the companies
C. exchanged for part ownership in the Stock Exchange
D. invested in different companies in the Stock Exchange
Companies with large scale need a way to reach the savings of the public at large. The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs. There can be little prospect of raising the sort of sums require from friends and people we know, and while banks may agree to provide short term finance, they are generally unwilling to provide money on a permanent basis for long-term projects. So companies turn to the public, persuading people to lend them money, or take a share in the business in exchange for a share in future profits. Thus they do by issuing stocks and shares in the business through the Stock Exchange. Only by doing so can they put into circulation the savings of individuals both at home and abroad.
When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead, he sells his shares through a stockbroker to some other savers who is ear- nest to in
A. ask another company to obtain their money for them
B. look for other people to borrow money from
C. put their shares in the company back on the market
D. transfer their money to a more successful company
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