Companies that do not want to issue more equity shares and dilute the ownership interests of existing shareholders prefer using bonds or debt to raise capital.

Name: Companies that do not want to issue more equity shares and dilute the ownership interests of existing shareholders prefer using bonds or debt to raise capital.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

Issuing bonds or debt allows companies to raise capital without diluting the ownership interests of existing shareholders, as it does not require issuing additional equity shares.

Companies That Do Not Want to Issue More Equity Shares