Jūratė Matonienė

The road to development is through the capital market: both stocks and bonds have advantages


Bank financing is the most popular way to obtain funds for the development of a company. But it is far from the only one. According to experts, any business operating in a transparent and accountable manner can consider a step into the securities market. One of the first questions to come up – which way: stock or bond issues – to go? Experts and practitioners emphasize that each of them has its advantages and can be easily adapted to the situation and needs of a particular company, writes the press release.

Myths and stereotypes are clear obstacles to the development of capital markets. Experts note that the benefits of listing on a stock exchange are plentiful, and they relate not only to funding, but also to reputational aspects of business such as visibility and transparency.

Dalia Augaitė, a senior lawyer at Sorainen, encourages companies that are considering a bond issue but are concerned about the complicated distribution process.

“The eyes of fear are wide at first, but once the issue is distributed, everything seems simpler and can be easily repeated later. Bond issuance is an alternative source of business financing, and the choice also ensures greater freedom of action in business. Of course, when issuing an issue, it is necessary to prepare a package of certain documents and assume obligations regarding the disclosure of information, which are not obligatory for unlisted companies”, D.Augaitė emphasizes.

Read the full article 15min.lt portal.

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