Describe the various sources of capital funding available to public firms.

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Describe the various sources of capital funding available to public firms.

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In contrast to small and new firms that can only get capital funding from mainly private sources, public firms raise the majority of their capital funds from public debt and equity markets. Public firms raise large amounts of short-term debt in the money market, primarily as commercial paper. Further, public firms raise long-term capital by issuing securities in the public debt and equity markets.

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