Can an expanding company use new stock to finance the expansion

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Can an expanding company use new stock to finance the expansion

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Answer:

Financing expansion is important decision for the company . It could take through many forms. Such as company can use own money, company could approach the equity investors or banks and  lenders group, it can borrow from outsiders, use internally generated funds,.

The sources for Financing expansion are same sources company  have used  for starting business. SO it is very clear form the above discussion that, expanding company use new stock to finance the expansion. It is easier to Financing expansion within  existing business rather than to  fund a startup.

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