--- title: "Meaning & Key Takeaway of: I'm struck by the fact that by and large…" description: "\"I'm struck by the fact that by and large equity capital doesn't play a big role in new financing; it's either bonds or internal financing but not reall..." image: "https://sms4smile.com/quotes/i/ede/kenneth-arrow-14948_bigs_i-m-struck-by-the-fact-that-by-and-large_1663251.jpg" --- # I'm struck by the fact that by and large equity capital… ![“I'm struck by the fact that by and large equity capital doesn't play a big role in new financing; it's either bonds or internal financing but not really equity. And therefore, it's not clear that anything which improves the equity markets has really much to do with the productivity of the economy…” quote by Kenneth Arrow](https://sms4smile.com/quotes/i/ede/kenneth-arrow-14948_bigs_i-m-struck-by-the-fact-that-by-and-large_1663251.jpg) [Download](https://sms4smile.com/quotes/i/ede/kenneth-arrow-14948_bigs_i-m-struck-by-the-fact-that-by-and-large_1663251.jpg) [Open image](https://sms4smile.com/quotes/i/ede/kenneth-arrow-14948_bigs_i-m-struck-by-the-fact-that-by-and-large_1663251.jpg) > “I'm struck by the fact that by and large equity capital doesn't play a big role in new financing; it's either bonds or internal financing but not really equity. And therefore, it's not clear that anything which improves the equity markets has really much to do with the productivity of the economy as a whole.” [Kenneth Arrow](https://sms4smile.com/quotes/author/kenneth-arrow/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Equity financing plays a minor role in overall corporate funding, so improvements in equity markets may not significantly boost macro productivity. **In simple terms:** Equity isn’t a major driver of economic productivity. Key Takeaway Focus on financing sources that truly impact growth. Themes finance economics productivity capital markets investment Mood analytical neutral informative Type economic explanatory When to use this quote - policy making - corporate finance - investment strategy - economic research Key Concepts macro‑economics financial structure resource allocation Questions to Reflect On - How do different financing options affect firm behavior? - What policies could better align equity markets with productivity? A Different Perspective Equity markets still influence innovation and risk distribution, which can affect growth indirectly. ★ ★ ★ ★ ★ No ratings yet [Bigs](https://sms4smile.com/quotes/about/bigs/) [Clear](https://sms4smile.com/quotes/about/clear/) [Customer](https://sms4smile.com/quotes/about/customer/) [Economics](https://sms4smile.com/quotes/about/economics/) [Economy](https://sms4smile.com/quotes/about/economy/) [Equity](https://sms4smile.com/quotes/about/equity/) [Equity Capital](https://sms4smile.com/quotes/about/equity-capital-655740/) [Equity Markets](https://sms4smile.com/quotes/about/equity-markets-782303/) [Facts](https://sms4smile.com/quotes/about/facts/) [Financing](https://sms4smile.com/quotes/about/financing/) [Improves Equity](https://sms4smile.com/quotes/about/improves-equity-782304/) [Internals](https://sms4smile.com/quotes/about/internals/) [Justice](https://sms4smile.com/quotes/about/justice/) [Large Equity](https://sms4smile.com/quotes/about/large-equity-782302/) [Play](https://sms4smile.com/quotes/about/play/) [Productivity](https://sms4smile.com/quotes/about/productivity/) [Really Equity](https://sms4smile.com/quotes/about/really-equity-782305/) [Roles](https://sms4smile.com/quotes/about/roles/) [Whole](https://sms4smile.com/quotes/about/whole/) ## Related quotes > [Ultimately savings have to go somewhere and I think they will find their home in financial markets and within financial markets, a large part…](https://sms4smile.com/quotes/rakesh-jhunjhunwala/ultimately-savings-have-to-go-somewhere-and-i-think-they-will-find/) [Rakesh Jhunjhunwala](https://sms4smile.com/quotes/author/rakesh-jhunjhunwala/) > [Equity capital is expensive. 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