a company wants to raise funds for meeting its capital requirements. but its plan is not to dilute ownership.comment in this situation
Dear student.
One of the ways in which the company can raise funds without diluting the ownership is through public deposits. That is, the company can raise funds directly from the public. It would not involve any dilution of ownership as there are no voting rights with the depositors
Another way to raise funds in this regard is through debentures. Through debentures the company raises long-term debt capital. Debentures do not affect the ownership of the company.
Regards
One of the ways in which the company can raise funds without diluting the ownership is through public deposits. That is, the company can raise funds directly from the public. It would not involve any dilution of ownership as there are no voting rights with the depositors
Another way to raise funds in this regard is through debentures. Through debentures the company raises long-term debt capital. Debentures do not affect the ownership of the company.
Regards