Capital allocation process

The capital allocation process involves the transfer of capital among different entities that include individuals, small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital flows freely between entities that want to supply capital to those who want it$.$ This flow of capital can be classified in three ways. In the table below, identify the nature of capital transfer given in the scenario with its appropriate classification:

xEdu.com is an early$-$stage start$-$up company that plans to issue its first public common stockcalled an initial public offering $($IPO$)-$in six months. It hires an investment bank to underwrite the issue.

Shylock, a moneylender in Shakespeare's play The Merchant of Venice, lends his own money to Antonio, who needs $3,000$ ducats to help his friend.

California Public Employees' Retirement System $($CalPERS$)$ manages pension and health benefits of California public employees and retirees. CaIPERS collects money from its participants and creates a pool of assets. It manages these assets by making investments across domestic and international markets.

Entrepreneurs often start businesses by seeking financial help from family and friends.