The Hidden Costs of Share Premium: Understanding the Disadvantages for Investors and Companies
In the world of finance and investment, the concept of share premium often garners attention, particularly during initial public offerings (IPOs) or when companies issue new shares. While share premium can be a useful tool for raising capital, it is essential to understand the potential disadvantages associated with it. This article delves into the complexities of share premium, exploring its implications for both investors and companies, and highlighting the risks that may not be immediately apparent.