Advantage of issuing shares over debentures

Question

Bank A raises capital by issuing shares to the public. The quality and subscription price of these shares are fixed and not all people who apply for these shares are sucessful in their application.

Answer 1

發行debentures 都會有固定的利率
另外，debentures interest是expenses
之後計profit，如果公司是loss的話
今年，佢要給許多錢出去

however, issuing shares(如果是指ordinary share)

Basic earnings per share =Profit or loss attributable to ordinary equity hlders of the parent entity/Weighted average number of ordinary share outstanding during the period

咁一股派股票是see 公司profit and loss幾多

相對debentures而言
由於debentures有固定的利率

因此，issuing shares over debentures，公司冇錢賺，就派少d

二者都是集合資金

but公司profit太大，issuing shares冇咁好

Answer 2

Advantage of issuing shares over debentures

有機會賺ｐｒｏｆｉｔ當inflation 出現。

2007-02-21 20:07:56 補充：
睇錯左，我再答過。　risk is low .因為經濟不境時，ｂａｎｋ可以對ordinary shareholder 降低intererst rate.相反，debentures　ｇｅ　interest rate is fixed,經濟不境時,ｂａｎｋ唔可以對持債人 降低intererst rate.。

Answer 3

The main advantage is that

INTEREST is paid to debentures owners no matter the company suffer loss or earn profit,

but for shares, DIVIDEND will only be given when the company report profits.