Question

Suppose Darnell would like to use $4,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling bonds to raise money for a new lab—a practice known as:

Answer 1

Answer:

Debt Financing

Explanation:

The company is asking the public in the stock exchange to lend her loan by purchasing the bonds issued by the company. The bonds are the loan notes issued by the company that is listed at the stock exchange and the practice that lets the company raise debt is called debt financing.