The circumstances in which a large corporation sell stock rather than bonds to obtain long-term financing and the circumstances it would sell bonds rather than stock. Introduction: Financing is the procedure of giving finances to business operations, creating procurements or investing. Financial organizations for example, banks are in the matter of giving funding to businesses, purchasers and investor to enable them to accomplish their objectives.

Question

How does a big company sell stocks rather than shares in order to acquire long-term finance? What does she sell bonds instead of shares under which circumstances?

Answer 1

Question

Chapter 16, Problem 6DQ

Summary Introduction

To determine: The circumstances in which a large corporation sell stock rather than bonds to obtain long-term financing and the circumstances it would sell bonds rather than stock.

Introduction: Financing is the procedure of giving finances to business operations, creating procurements or investing. Financial organizations for example, banks are in the matter of giving funding to businesses, purchasers and investor to enable them to accomplish their objectives.

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How does a big company sell stocks rather than shares in order to acquire long-term finance? What does she sell bonds instead of shares under which circumstances?

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