DFS -issuing shares
Sally
Registered Posts: 69 Regular contributor ⭐
This may be a daft question but... when preparing the report in Section 2 .. is it ever an option to recommend issuing shares to raise cash. I've always puzzled over this. They never seem to mention authorised share capital which i believe is the amount of shares that could be issued in total so i wouldnt know if this had been exceeded. Basically, i'm just trying to amass a stock of possible recommendations and do not know if this is applicable. Any ideas???
0
Comments
-
Well yeah a company can isue shares to raise cash however my initial thought was they usually ask you to prepare a report for an investor and would an investor be happy about issueing more shares as this may lead to a drop in the earnings per share ratio, there would be shareholders to share in the profits.
Maybe if the capital being raised was to invest in new PPE in order to improve efficiency and therefore profits then that would be acceptable, but maybe I'm talking rubbish lol
Sorry I'm not much help0 -
If it was an issue of shares to current holders only...rights issue I think, it is a cheap & easy way to raise cash by offering extra shares at below market value & it keeps the exisisting base of shareholders0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 321 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership