Explain How Social Entrepreneurs Can Use Capital Markets to Fund

question 77

Essay

Explain how social entrepreneurs can use capital markets to fund their ventures.

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Definitions:

Collateral

Collateral refers to assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the terms of the loan agreement.

Security Agreement

A legal document that grants a creditor a security interest in an asset or property as collateral for a loan, typically detailed in personal property.

Perfect

In legal and financial contexts, to make a claim or interest valid and enforceable against third parties.

Creditor

is a person, bank, or entity that lends money or extends credit to another party, thus holding a claim against the borrower for the return of the asset or its value.