What does internal financing mean?
Definitions for internal financing
in·ter·nal fi·nanc·ing
This dictionary definitions page includes all the possible meanings, example usage and translations of the word internal financing.
Wikipedia
Internal financing
In the theory of capital structure, internal financing using its profits as a source of capital for new investment, rather than a) distributing them to firm's owners or other investors and b) obtaining capital elsewhere. It is to be contrasted with external financing which consists of new money from outside of the firm brought in for investment. Internal financing is generally thought to be less expensive for the firm than external financing because the firm does not have to incur transaction costs to obtain it, nor does it have to pay the taxes associated with paying dividends. Many economists debate whether the availability of internal financing is an important determinant of firm investment or not. A related controversy is whether the fact that internal financing is empirically correlated with investment implies firms are credit constrained and therefore depend on internal financing for investment.
Numerology
Chaldean Numerology
The numerical value of internal financing in Chaldean Numerology is: 4
Pythagorean Numerology
The numerical value of internal financing in Pythagorean Numerology is: 8
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"internal financing." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/internal+financing>.
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