Q 10.32: fultz home furnishings is considering issuing stocks or bonds to raise money to purchase a new manufacturing facility. if they want to issue securities in small denominations, which type of security should they choose?

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Business

Byron Washington

1 February, 14:34

Q 10.32: fultz home furnishings is considering issuing stocks or bonds to raise money to purchase a new manufacturing facility. if they want to issue securities in small denominations, which type of security should they choose?

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Messiah Coleman · Answer 1

The type of security that they should choose is only stocks

When issuing stocks, the amount of capital that you wanted to sold will be divided among the total amount of shares that you created.

Because of this, the denomination would be significantly smaller compared to bonds.