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Economics 330 Money and Banking Lecture 8 and 9 - page 4 / 23

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Eight Basic Facts

1.

Stocks are not the most important sources of external financing for businesses

2.

Issuing marketable debt and equity securities is not the primary way in which businesses finance their operations

3.

Indirect finance is many times more important than direct finance

4.

Financial intermediaries are the most important source of external funds

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