sbodovinac sbodovinac
  • 04-04-2020
  • Business
contestada

One of the disadvantages of issuing stock is that

Respuesta :

TheBlueFox
TheBlueFox TheBlueFox
  • 04-04-2020

One of the disadvantages of issuing stock is the fact that it dilutes the earnings for shareholders.

The more shares there are, the less earnings.  

Answer Link
henrydesanta
henrydesanta henrydesanta
  • 04-04-2020

Answer:

when the stocks are issued, the ownership structure of the company changes and the initial founders may lose their majority stake in the company eventually. Moreover, when more shares are available in the equity market, the company is at the risk of a take over by a rival company.

Explanation:

Answer Link

Otras preguntas

How do you multiply a decimal? For exapmple,2.4 times 3.5
What is the supreme law of the land?
Which terms identify types of chemical reactions? (1) decomposition and :sublimation (2) decomposition and synthesis (3) deposition and sublimation (4) depositi
The coefficients in a balanced chemical equation represent (l ) the mass ratios of the substances in the reaction (2) the mole ratios of the substances in the r
A bird flies 2.8 due west and then 2.7 due north. Another bird flies 2.7 due west and 2.8 due north. What is the angle between the net displacement vectors for
What is an amendment?
What happened at the Constitutional Convention?
A triangle has two sides of length 6 and 9. What could the length of the third side be? Check all that apply, A. 10 B. 7 C.4 D.2 E.15 F.12
There were 13 original states. Name three.
Who is the “Father of Our Country”?