You are a corporate treasurer seeking to raise funds for your firm via either debt or...
You are a corporate treasurer seeking to raise funds for your firm via either debt or equity offering.
What are some advantages of raising funds via a financial intermediary (FI) rather than by selling directly to the public?
Homework Answers
Advantages of raising funds through financial intermediaries
rather than by selling
1. It helps in saving time and costs from registration, paper work
and revealing information to public.
2. The cost of capital issued through financial intermediary is
less as compared to selling directly to the public.
3. There is flotation cost involved in issue of securities to
public which is not there while raising funds from financial
intermediaries.
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