In general,when a firm decides to raise capital there are stage I and stage II decisions.Stage I decisions include the amount to be raised and the type of security to be issued.Once the type of security is chosen this is a decision that cannot be changed in stage II.

Question

Quizplus · Accepted Answer

In stage II decisions, a firm can still make choices regarding the specific terms and conditions of the security to be issued, such as pricing and timing, even though the type of security (e.g., debt or equity) has been chosen in stage I.

In General,when a Firm Decides to Raise Capital There Are