5/18/2011 Different ways for a company to finance its operations A typical Hong Kong company: To raise its own funds Trade credit from banks More successful companies may raise funds from: >PE,VC or institutional investors(financial institutions or industry players) >Public flotations-e.g.IPOs(initial public offerings) Different ways for a company to finance its operations ·Retained profits ·Equity finance Shares Options ·Debt finance 。Bank loans Other forms:e.g.debentures,bonds ·Hybrid finance Preferred stock Unsecured loan stock Secured debenture stock ·Convertible stock5/18/2011 4 7 Different ways for a company to finance its operations • A typical Hong Kong company:  To raise its own funds  Trade credit from banks  More successful companies may raise funds from: PE, VC or institutional investors (financial institutions or industry players) Public flotations – e.g. IPOs (initial public offerings) 8 Different ways for a company to finance its operations • Retained profits • Equity finance  Shares  Options • Debt finance  Bank loans  Other forms: e.g. debentures, bonds • Hybrid finance  Preferred stock  Unsecured loan stock  Secured debenture stock  Convertible stock