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Bonds and Stock Market

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What kind of advantages a company can have by issuing bonds, or investing its profit in stock market for example investing in other companies stock, and what kind of problem can it ( company) have by investing in the stock market for example inconvenient of a bad investment into the stock market system.

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A company can have several advantages by issuing bonds. Some of these are as follows:
1. Issuance of debt can increase the return on equity. Thus shareholders usually prefer issuing debt.
2. Issuance of debt increases the value of the firm by creating a tax shield. The value of this tax shield can range from 5% to ...

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