Companies with large scale need a way to reach the savings of the public at large. The sam
When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead, he sells his shares through a stockbroker to some other savers who is earnest to invest his money.
A lot of the services needed both by industry and by each of us are provided by the Government or by local authorities. The governments at all levels furnish us with hospitals, roads, electricity, telephones, equipment and other new development. The money raised through taxes alone can't serve us properly. The government, local authorities, and nationalised industries therefore frequently need to borrow money to support major capital expenses, and they too, come to the Stock Exchange.
There is hardly a man or woman in this country whose job or whose living standard does not rely on the ability of his or her employers to raise money to finance new development. In one way or another, the money needed must be gathered from the public at home or abroad. The Stock Exchange exists to supply a channel through which these savings can reach those who need finance.
Almost all companies involved in new production and development must ______.
A.depend on their own financial resources
B.invite the banks to provide long-term finance
C.borrow large sums of money from friends and people they know
D.rely on the population as a whole for finance