ACC 281 Week 4 DQ5 - 7430

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What are the benefits for an organization to raise capital by issuing stocks as opposed to issuing bonds?  Why? Are there any advantages to issuing bonds instead of issuing stocks?  If so, what are they?


The benefits of an organization to issue stocks rather than bonds are that stocks increase over time and don’t yield debt, like a bond does.  Stocks can also transfer and are generally more appealing to investors.  I know that my company is stock owned and offers us stocks quarterly.  We also offer stocks to outside members and it is a great way for our company to be funded.  I don’t think we sell bonds, at least if we do I’m not aware of it.  I also know that our stock is at an all-time low which is not making many people happy!  Our shareholders have been meeting quite frequently about that too.  I’m not as familiar with bonds, but the nice part about bonds is that they mature over time.  I know that I have some savings bonds that were purchased for me when I was younger and will mature about the time I finish with school (which is wonderful when the student loan bills start rolling in).



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What are the benefits for an organization to raise c