The fact that a bank collects money from many small investors and transforms it into a few large-volume loans. – A company finances a larger investment through – the contributions of several individual investors, who usually share in the profits (participation financing), – by taking out several individual loans from various domestic and foreign banks (credit financing), or – by issuing a bond or new shares. – See maturity transformation, Modigliani-Miller theorem.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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