What is the Adv & Disadv for a co. go to the stock mkt?
What is the benefits and disadvantages for a company raising money from the stock market?
- 1 十年前最愛解答
- No obligation to pay interest or dividend to shareholders
- Not subject to covenant as in bank loans
- Increased publicity and creditability
- relatively easy to raise large amount of fund
- control diluted due to public shareholding
- subject to more regulation (Listing Rules) and supervision (analyst)
- No tax benefit as dividend is not deductible for tax
- Huge finanacial and time costs to hire professional for IPO
- subject to market fluctuation