What is the difference between borrowing money from a bank and issuing shares of stocks? Borrowing is a less messy way of raising capital, first of all. A company will need only to satisfy a bank’s requirements whereas, issuing shares will involve so many people who have a stake in the company’s stability or ability to grow. Of course, there is the loan interest which may deter a company from getting sufficient loans or from handling the payment of the loan based on its profitability. Issuing stocks, although it frees a company from paying... read full review »