Session 14: Equity Analysis and Valuation
Reading 58: Overview of Equity Securities
LOS g: Explain the role of equity securities in the financing of a company's assets and creating company value.
The primary reason for a firm to issue equity securities is to:
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A) |
improve its solvency ratios. | |
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B) |
increase publicity for the firm’s products. | |
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C) |
acquire the assets necessary to carry out its operations. | |
While issuing equity securities can improve a company’s solvency ratios and increase the firm’s visibility with the public, the primary reason to issue equity is to raise the capital needed to acquire operating assets. | 
发表于 2011-3-30 11:19
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