What is the biggest disadvantage of issuing stock, from the company's perspective?

Question

Quizplus · Accepted Answer

Issuing stock can dilute ownership in the company, meaning that existing shareholders may own a smaller percentage of the company after the issuance. This can also potentially lead to loss of control for the company's management. While paying dividends to stockholders is a potential disadvantage, it is not required and can be managed through the company's dividend policy. Dealing with financial advisors during an IPO and keeping track of individual stockholders are also potential challenges, but they are not the biggest disadvantage from the company's perspective.

What Is the Biggest Disadvantage of Issuing Stock, from the Company's