Owners of a corporation who want to raise more capital by issuing new securities but who also want to retain control of their company could issue

Question

Quizplus · Accepted Answer

Issuing either preferred stock or bonds allows a corporation to raise capital without diluting control. Preferred stock typically does not carry voting rights, and bonds are a form of debt, not equity, so neither would dilute the existing owners' control like issuing more common stock would.

Owners of a Corporation Who Want to Raise More Capital