rights issue

Bearing The Fund Crunch

The past couple of weeks have drastically altered stock market strategies for many companies. Most have been aware from the month of March that their future financing questions need very specific answers. The banking system is on shaky ground with each bank simply refusing to lend money to a company no matter how credible or in need of capital it is. Companies have been trying to squeeze loans out of banks and are in returning paying ridiculously high amounts of interest in return. Some companies are paying interest as high as 35 %.Thus many companies have decided to sell more shares of their brands in an effort to raise funds. While this was the right thing to do even 6 weeks ago, it isn’t anymore because the savviest of investors are refusing to part with cash.

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