Reason for not issuing 1 million dollar of common stock

What is the reason that a company would probably not issue $1 million worth of fresh common stock in January to evade all short-term borrowing during the year?

E

Expert

Verified

As the common stock financing is a long-term financing process so it would most probably not be utilized in meeting this short-term financing requirement.

   Related Questions in Financial Management

©TutorsGlobe All rights reserved 2022-2023.