Discuss the merits and demerits of raising finance

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Discuss the merits and demerits of raising finance through the issue of shares for a proprietary company with a small number of shareholders.

Discuss the legal characteristics of equity capital in general. You may wish to compare it with debt capital as that would better bring into focus its unique characteristics. Explain the merits or demerits of each characteristic from the perspective of a proprietary company with a few shareholders. For e.g., limitation on number of shareholders, dilution of shareholding, existing shareholders may lack resources to take up shares, etc

Reference no: EM132681633

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