What are the pros and cons of share capital?

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1205530

2026-05-17 11:11

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Pros of share capital include the ability to raise significant funds for business expansion without incurring debt, as well as attracting investors who may bring valuable expertise and networks. Additionally, issuing shares can enhance the company's credibility and visibility in the market. However, the cons include potential dilution of ownership and control for existing shareholders, as well as the obligation to meet regulatory requirements and maintain transparency. Furthermore, dividends may be expected by shareholders, impacting cash flow.

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