1. The longest journey begins with the first step.
Financing a Business
The longest journey begins with the first step.

2. Define Investment
Investment - Investment is time, energy, or money spent in the hope of future benefits actualized within a specified date or time frame.

3. What Are Financial Markets
Financial Markets – Markets in which Financial Institutions trade in Securities, Commodities, and other Financial Instruments:
Commercial Banks
Credit Unions
Investment Securities, & Management Firms

4. Long-term Loan
Long-term Loan:
A type of loan that has an extended time period for repayment usually lasting between three and 30 years.
Installment
Lump sum

5. 3 Types of Short-term Loans
1. Secured Loan (Collateral)
2. Unsecured Loan (No Colletral)
3. Trade Credit (Line of Credit)

6. Equity
Define equity:
In accounting and finance, equity is the residual value of an asset after liabilities have been paid for (home – mortgage = equity).

7. Bondholder What is a bondholder?
One who has lent a specific amount of money to a public or private organization, at a specific interest rate, and for a specified period of time.

8. Stockholder
What is a stockholder – One who has purchased at least one share of ownership (share) in a corporation.

9. Common Stock vs. Preferred Stock
Common Stock – Ownership of stock with privileges such as voting rights.
Preferred Stock – Ownership of stock without voting rights, but first in line to receive dividends (profits).

10. Balance Sheet vs. Income Statement
Balance Sheet - In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a business organization.
Income Statement - An income statement or profit and loss statement It indicates how the revenues are transformed into net income. The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.