A Significant Advantage of Issuing Stock Instead of Debt Is

question 33

True/False

A significant advantage of issuing stock instead of debt is that payment of dividends is discretionary.

---

Definitions:

Ex-rights Date

The ex-rights date is the first trading day when the buyer of a stock is not entitled to receive a previously declared rights offering, often leading to a decrease in the stock's price.

Venture Capital

Venture capital is financing provided to startups and small businesses with strong growth potential by investors seeking high returns.

Investments

Assets or items that an individual or entity purchases with the expectation that it will generate income or appreciate in value over time.