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Transfers of capital from suppliers to recipients

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Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital.

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Solution Summary

The solution outlines the two basic ways to transfer capital, and then explains and details both in a few paragraphs. Total word count of the solution is 320.

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There are basically two ways to transfer capital.
1. The supplier of capital either invests or lends.
2. The user of capital either allows investment or borrows.

The main difference between investing and lending/borrowing is whether the capital becomes an equity interest or a debt arrangement.

Let's say you have capital you want to put to work. Your choices are:
1. As an investor, you can buy stock in companies, either common or preferred stock
2. As a ...

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