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what are some advantages of stock financing? ​

Sagot :

Answer:

No Mandatory Payments

One of the biggest advantages of common stock from the issuing company's perspective is the absence of required payments. Debt financing requires a business to make interest and principal payments on a specified schedule. Common stock has no such requirements

Answer:

In contrast to bond interest, there is no legal obligation to pay dividends to common stockholders. Common stock financing increases the borrowing capacity of the company. Because common stock provides a cushion against losses of creditors, the sale of common stock generally increases the creditworthiness of the firm.

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