Companies can raise additional capital either by issuing bonds or by selling common stock.And investors can buy either bonds or common stock as a way to earn additional revenue.Both alternatives have ramifications for both the issuing company and the investor.
Required:
Discuss the advantages and disadvantages of bonds versus common stock from both the issuing company's and the investor's perspective.

Question

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The Answer of Companies can raise additional capital either by issuing bonds or by selling common stock.And investors can buy either bonds or common stock as a way to earn additional revenue.Both alternatives have ramifications for both the issuing company and the investor.
Required:
Discuss the advantages and disadvantages of bonds versus common stock from both the issuing company's and the investor's perspective.

Companies Can Raise Additional Capital Either by Issuing Bonds or by Selling