# data[].attributes.body
Dividend payments - optional

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Interest payments - fixed, compulsory

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Dividend payments are not tax-deductible

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LARGE issue costs

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Normally irredeemable --> Permanent funds

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lower gearing level, lower financial risk

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Easily traded, thus attractive to investors

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Higher cost of ordinary shares, thus an increase in cost of capital

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Diluted control

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Interest payments are tax-deductible

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Lower interest rate than straight bonds

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If converted to shares, no funds would be needed on redemption

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If share price increases, then conversion rate may be too generous

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On conversion, gearing will be lowered

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If converted, EPS can be diluted

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Existing shareholders can realise value by converting shares into cash

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Realising the profile of a business

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If in efficient market, shares are efficiently priced

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Broadening the investor base of a business

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Attracting and retaining employees by offering incentives such as share options

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Large issue costs

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An IPO is TIME- and MONEY-consuming

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Feasible?

Minimum market capitalisation requirement

at least 3 years trading needed

a minimum of 25% shares in public hands

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High regulatory burden

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Greater scrutiny from analysts and other businesses

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Vulnerability - may be targeted for a takeover bid if share price falls