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Capital sources: Issuing stock
 If
you have formed a corporation, you may be able to raise funds by
selling shares of the company, called stock. By selling stock you
make others part owners of the business. There are two types of
shares, common and preferred. Common stockholders are the ones who
enjoy voting rights in the company, although preferred shares do
include certain privileges, such as a proportionate share of the
remaining assets should the business fail.
If you are thinking about making a public offering
of company stock, you should first talk to your lawyer and accountant
to understand how this will affect your business. You can also contact
the Small
Business Administration for information and contacts through
their ACE-Net and SBIC programs.
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