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16 May, 18:39

One of the disadvantages of issuing stock is that

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  1. 16 May, 18:47
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    when the stocks are issued, the ownership structure of the company changes and the initial founders may lose their majority stake in the company eventually. Moreover, when more shares are available in the equity market, the company is at the risk of a take over by a rival company.
  2. 16 May, 18:57
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    One of the disadvantages of issuing stock is the fact that it dilutes the earnings for shareholders.

    The more shares there are, the less earnings.
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