The first is the stock market. In the stock market, companies can obtain funds by issuing shares, thus making investments. However, changes in the stock market will also affect the company's investment behavior. If the stock market falls, the company may slow down its investment plan to avoid wasting more money. In addition, the fluctuation of the stock market will also affect the financing cost and stock price performance of the company.
Followed by the bond market. In the bond market, companies can raise funds by issuing bonds. The interest rate of bonds is usually more stable than the return of stocks, so they are attractive to investors who want to invest stably for a long time. These investors usually don't look at market fluctuations in the short term like stock investors, and companies will be more confident to make long-term investment plans.
Finally, the money market. The money market includes short-term bonds and market funds, from which companies can obtain short-term funds to meet temporary capital needs. The fluctuation of the money market will also directly affect the company's cash flow, because the repayment of short-term debt depends on the liquidity of the money market.
Therefore, different capital structures have different effects on the company's investment and financing behavior, and the company needs to choose the most suitable capital structure according to its own financial needs and market conditions.