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As the CEO of Pershing Square Capital Management, the hedge fund he founded, he oversees $19 billion in assets. But before he became one of the elite, he learned the basics of investing in his early 20s. A business owner can take money from a lender, who profits from interest on his loan, or an equity investor, who buys shares in the company.

When a business files for an initial public offering (IPO), its owners offer a portion of it to the general public, which raises cash, and the company gets listed on an exchange.
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