Internal Sources of Finance

Internal finance

* comes either from the business’ owners or from the outcomes of business activities

equity

* the finance raised by a company through inviting new owners. 


Ordinary Shares

* the purchase of ordinary shares by individuals means they have become part-owners in a publicly listed company
* they get voting rights according to the number of shares that they have as well as payments

Share types

* new issue
* rights issue
* Placements
* Share purchase plan

new issue

* a security that has been issued and sold for the first time on a public market

rights issue

* privilege granted to shareholders to buy new shares in the same company
* Usually in proportion to the amount of existing shares they own

placements

* additional shares that are offered at a discount to their current trading price
* Not open to the general public

share purchase plans

* an offer to existing shareholders in a listed company to purchase more shares in that company without brokerage fees.

private equity

* the money invested in a private company not listed on the ASX