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What are the advantages and disadvantages to a company receiving a bailout?

The US government recently bailed out several companies by making investment in their preferred shares. What are the advantages or disadvantages to the company?

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The advantages are that they were able to raise capital during a period when the market would not have been willing to buy stock. The risk of bankruptcy was just too high. In order to attract capital during the financial crisis, if it was at all possible (unclear that they could have), the firms would have had to give away lots of control for very little funds. The government was willing to put capital at risk at a much lower ...

Solution Summary

Your response is 280 words and gives two advantages and two disadvantages from the point of view of the issuing firm.

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