what is the disadvantage of issuing shares 
the disadvantages of going public include following extra regulations and disclosure requirements being a publicly traded company can bring extra scrutiny and increase accounting and other costs issuing more shares later also has disadvantages shareholders generally don t like being asked to cough up more money if they don t wish to have their ownership stake diluted rights issues can damage a company s reputation and make investors want to steer clear thus to raise the required funds it s usually necessary to offer the new shares at a notable discount to their current price the bottom linecompanies issue shares to the public to raise money they initially sell a set number of shares to investors and then those same shares can be traded among investors on a secondary market issued shares are those that the founders or bofd have decided to sell in exchange for cash they include the shares held by investors and employees otherwise known as outstanding shares and the shares a company bought from investors and removed from the market otherwise known as treasury stock 