The article examines how Hungarian companies raised money for investments in the early years of transition. Despite being listed on the stock exchange, many firms faced financial constraints that limited their ability to invest. Foreign-owned companies had better access to external funding, while high debt levels hindered investment. State ownership did not ease financial constraints, and larger firms were not necessarily less constrained than smaller ones. The findings suggest that financial limitations were significant among Hungarian firms from 1992 to 1998.