A public limited company wishing to obtain more capital may have to
Answer Details
When a public limited company requires more capital, one way to raise funds is by issuing debentures. Debentures are long-term debt instruments issued by companies to raise funds from the public. The company promises to repay the principal amount along with a fixed rate of interest to the debenture holders at a specified time in the future. The process of issuing debentures allows the company to raise funds without diluting ownership, as debenture holders do not have any ownership rights in the company. Therefore, issuing debentures is a common way for public limited companies to obtain additional capital. The other options listed are not suitable for raising additional capital as they either involve investing in securities or applying for financial assistance.