investors cannot earn money, the company does not have to repay capital, paying dividends is not an option
It allows the corporation to raise capital.
Raising of capital. Reasons for wanting to raise capital is another topic, though.
Sale Stocks
Company can mainly raise its capital by issuing equity or debt instrument e.g stocks bonds preference share debenture loans etc
One reason is raise capital for a company without sacrificing the control of company. Issuing common stock would do this.
It allows the corporation to raise capital.
Raising of capital. Reasons for wanting to raise capital is another topic, though.
Sale Stocks
Company can mainly raise its capital by issuing equity or debt instrument e.g stocks bonds preference share debenture loans etc
One reason is raise capital for a company without sacrificing the control of company. Issuing common stock would do this.
One reason is raise capital for a company without sacrificing the control of company. Issuing common stock would do this.
Holding companies are able to raise capital using methods that banks are restricted from practicing, such as issuing commercial paper
Businesses issue stock to raise capital Advantages of issuing stock: - A Company can raise more capital than it could borrow. - A Company does not have to make periodic interest payments to creditors. - A Company does not have to make principal payments. Disadvantages of Issuing Stock: - The principal owners have to share their ownership with other shareholders. - Shareholders have a voice in policies that affect the company operations. Source Qwoter.com
by selling bonds and issuing stocks...
by selling bonds and issuing stocks...
To raise money that can be used to grow the company
To raise money that can be used to grow the company.