If a company is facing negative free cash flow,it may issue stock in order to continue operating at its planned level.

Question

Quizplus · Accepted Answer

Issuing stock can be a way for a company to raise capital and improve its cash flow situation. By selling shares of ownership in the company, the company can generate funds that can be used to continue operations or invest in growth opportunities. However, issuing stock also dilutes the ownership of existing shareholders and can have implications for the company's future financial performance.

If a Company Is Facing Negative Free Cash Flow,it May