We explain the ways in which listed firms fund their growth and demystify share splits and consolidations
In the latest instalment in our first-time investor series, we look at the various ways in which companies raise money to fuel their expansion, then explore the reasons that companies undertake ‘share splits’ and ‘consolidations’. PLACING NEW SHARES The different methods by which publicly-traded companies raise money to fund expansion include the use of bank debt or the sale of new shares. The three main ways in which companies...