Disadvantages of floatation of new shares, Finance Basics

Assignment Help:

Disadvantages of Floatation of New Shares

1. The cost of getting a quotation is high, mainly when a new issue of shares is completed and the company is small. It means that substantial costs are fixed and so are relatively greater for small companies. The annually cost of keeping the quotation may be high also because of such things as increased disclosure, keeping a larger share register, printing more annually reports.

2. The improved disclosure requirements may be disliked via management.

3. The market-determined price and the greater accountability to shareholders such comes along with its concerning the company's performance may not be liked through management.

4. Control of a particular group of shareholders may be diluted through permitting a proportion of shares to be held via the public.

5. There will be a greater likelihood of particular the subject of a takeover bid and it may be hard to defend it along with wide share ownership.

6. Management situations, management workers provide themselves more salaries because of prosperity obtained.


Related Discussions:- Disadvantages of floatation of new shares

Assignment , what are the difference between receipt and payment account an...

what are the difference between receipt and payment account and income and expenditure account ?.

Determining the rules for resolving conflict, Instructions: Read the Herzbe...

Instructions: Read the Herzberg findings related to extrinsic and intrinsic factors driving job satisfaction, dissatisfaction and motivation. To what extent should employers feel r

Motgage Broker Assgnment, ollowing a personal introduction, and before you ...

ollowing a personal introduction, and before you begin gathering information about the clients’ existing financial situation or needs, there are certain disclosures you are require

Determine the critical path and the expected completion, The information in...

The information in the table below is available for a large fund-raising project. a. Determine the critical path and the expected completion time of the project. b. Plot the

What are the types of financial assets, What are the types of financial ass...

What are the types of financial assets? Types of Financial Assets: a. Loans b. Bank Deposits c. Stocks A share of ownership within a company d. Bonds A promis

Forms of business organizations, Forms of Business Organizations The te...

Forms of Business Organizations The term business is wide in meaning. It includes all human activities made for the sake of earning profits through the process of production of

Calculate the total increment prize, Prudence buys a bond in EUR when it is...

Prudence buys a bond in EUR when it issued by the French government and inflation linked.  It offers a 2% yearly coupon.  She holds it for five years.             Par value: EUR

Financial intermediaries, Financial Intermediaries These are instituti...

Financial Intermediaries These are institutions that link or mediate between the investors and savers: Some examples of financial intermediaries are as follow: 1. Comme

policies decided by the proprietor, Some of the policies decided by the pr...

Some of the policies decided by the proprietor are: 1) Time of operating the business 2) Promotion through advertising or special offers 3) Dealing with suppliers and cus

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd