External Financing Method: Financing through Debt and Stock Issuance

International Journal of Agricultural Management and Development

مقاله 12، دوره 7، شماره 4، اسفند 2017، صفحه 517-524   

نوع مقاله: Research Article

نویسندگان

Reza Aghajan Nashtaei؛ Ebrahim Chirani^* ؛ Mehrdad Goudarzvand Chegini

Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran

چکیده

Countries need short, medium, and long-term investment plans for production growth and development. Different sources for these investments can be supplied through retained profit, stock issuance, and bank loans, or a combination them. Institutions and firms need huge amount of capitals for their survival, production, and also development of activities. In addition, these institutions and firms rely heavily on financial markets for self-financing. The role of financial markets is to provide the required capitals for institutions and firms. Financing strategy is considered as one of the main areas of financial management decisions in companies seeking to increase shareholders’ wealth. Therefore, the aim of this paper was to discuss conventional methods of external financing through debt and stock issuance and explain their associated advantages and disadvantages.

کلیدواژه‌ها

Financial Markets؛ Financing through debt؛ stock issuance

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