List eight basic facts about financial structure throughout the world.
1 Stock is not the most important source of external financing for the business.
2 Issuing marketable debt and equity securities is not the primary way in which businesses finance their operations. Issuing marketable securities is not the most important source of financing throughout the world.
3 Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance, in which businesses raise funds directly from lenders in the financial markets.
4 Banks are the most important source of external funds used to finance businesses. 5 the financial system is among the most heavily regulated sectors of the economy.
6 Only large, well-established corporations have access to securities markets to finance their activities.
7 Collateral is a prevalent feature of debt contracts for both households and businesses
8 debt contracts typically are extremely complicated legal documents that place substantial restrictions on the behaviour of the borrower.