All businesses need money to function. They need to pay their staff and their taxes, buy equipment and sometimes buildings. If they make products they will also need to buy raw materials. Small business owners often raise money from their own savings, borrow money against their own homes or borrow from the bank. Larger organisations also borrow from banks and other financial institutions. In addition, they may sell shares in their company. Anyone who buys shares in the company becomes a part owner.

Shares may be publicly listed on a stock exchange, such as the London Stock Exchange and Wall Street Stock Exchange, where buyers and sellers trade. There are two main ways to buy shares:

Buy them directly from the business when they are first issued
Buy them from people selling their shares on the stock exchange.

Usually, you would trade through a stockbroker or online trading account. Companies have other ways of raising money from the public and existing shareholders. They may issue Debt Securities, such as bonds. They may also offer Rights Issues to existing share holders. Rights issues usually pay an annual or bi-annual percentage of money invested as a divided amount and at some point in the future, the rights may convert to shares.

To Summarise:

Business Need Money To Function
Many Need To Raise Funds
They may sell shares in their company to investors or raise funds by selling bonds