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Visiting the Main Attractions in Finance Land

Finance Land is filled with a surprisingly large and diverse number of organizations, each one specializing in a different area of financial goods or services and many of them being quite narrow in their focus. Regardless of how limited or unlimited in offerings any particular organization may be, they’re all interconnected, and each one plays a very important role in the greater economy. All the organizations in Finance Land influence each other and the individuals working for them in several important ways that vary depending on which type of organization you’re talking about.

The following sections introduce you to some of the more common financial institutions and related organizations and explain how each one plays a role in the world of corporate finance.

Corporations

In case the name of this book didn’t give it away already, corporations are the primary focus, so I start your finance tour with them. Corporations are a special type of organization wherein the people who have ownership can transfer their shares of ownership to other individuals without having to legally reorganize the company. This transferring of shares is possible because the corporation is considered a separate legal entity from its owners, which isn’t the case for other forms of companies. This characteristic has a few significant implications that influence the financial operations and status of corporations compared to other forms of organizations:

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