Understanding the full range of financial mechanisms

Exploring Diverse Mechanisms

There are many different mechanisms which enable capital to flow across landscapes. Mechanisms are different from sources of capital and objectives of capital. They are, in fact, the means by which sources of capital seek to reach their objectives, and they can be quite varied.

The major innovations in the financial industry over the past two centuries, in fact, are all related to the development of new financial mechanisms: new ways for capital to be put to work generating the kinds of returns capital sources desire. Only in the past 30-40 years have significant innovations related to the purpose or objective of capital really begun to shift the way new mechanisms are developed.

So naturally, the mechanisms which enable capital to be directed to the right landscape investment, are quite diverse, but often are not a perfect fit.

Debt & Equity: the 2 main categories of mechanisms

In the videos below, James Mulkerrins of Wageningen University guides you through the ins and outs of debt and equity; the two main categories of for-profit financial mechanisms.

Debt Mechanisms

Equity Mechanisms

Photo by Laura Crowe on Unsplash

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