They can avoid the discipline of financial markets and costs of issuing new securities are high. The costs of issuing new securities are high and the announcement of a new equity issue is usually bad news for investors.
what ia meant by markets?
- In the field of economics, a market is a collection of mechanisms that allow for the exchange of goods and services between parties.
- The majority of markets rely on sellers providing their goods or services to purchasers in exchange for money, however parties may exchange goods and services by barter.
- It is possible to define a market as the mechanism by which the costs of goods and services are decided.
- Markets provide for the distribution and allocation of resources in a community as well as the facilitation of trade.
- Gift economies are typically replaced by markets, which are frequently maintained by laws and conventions like a booth fee, competitive pricing, and a source of items for sale.
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