What are the different ways to raise capital for listed companies?

I would also like to know their advantages and disadvantages.

OH wow, I just went over this with someone in real life. Awesome!

For listed companies (and unlisted companies, sometimes) there is a wide array of financial instruments to raise capital.

1.) Issue Commercial Paper--I'd ask your bank about this one, but it's pretty much a short term instrument used to manage working capital and purchase inventory. This is a money market security. The maturities generally don't go past 9 months and because of the the interest you will pay on this will generally be pretty competitive. To do this: a.) sell the commercial paper to a dealer, or b.) market these securities to a buy-and-hold investor.

2.) Sell stocks or bonds.- The disadvantages to this can be that they are typically have higher interest, but they are generally long term. There is a sort of middle ground between stocks and bonds, however, and that is convertible bonds. This means if you issue these (they have a low coupon rate) then the person has the option to convert the bond into common stock. This enables you to sort of get some sort of flexibility, which might appeal to some people doing investors.

3.) Alternatively, you can buy other companies' stocks, bonds, and commercial paper if you feel the need to put some of those on your asset sheets as a source of funds.

Hope I helped!

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　　Seed Capital 　　Return Investment 　　Real Money 　　Real Estate Investment 　　Raise Capital 　　Property Investment 　　Profitable Investments 　　Private Investment

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