What are the advantages and disadvantages of domestic enterprises' capital increase?

What are the advantages and disadvantages of domestic enterprises' capital increase? 1. What are the advantages and disadvantages of capital increase?

Capital increase: Advantages: increase the company's available funds, expand factories, increase employees, purchase equipment ... and increase market competition. Disadvantages: the company's share capital becomes larger. If you earn as much money as before the capital increase, the dividend per share will decrease.

Second, if there are 1 listed companies, the impact of capital increase on the stock market value. If the company's current capital is100000 yuan (100000 shares) and its total assets are 30 million, then when 30 yuan increases its capital by100000, the current stock market value is: the total assets will become 40 million, but the shares will increase to 2 million shares.

2. What is the impact of holding stocks before (or after) capital increase? If the company's current capital is 6,543,800,000 yuan (6,543,800,000 shares), shareholder A holds 6,543,800,000 shares, with a shareholding ratio of 6,543,800%.

When the capital is increased by 6,543,800 yuan: (Shareholder A did not participate)

The capital contribution is 20,000,000 (2,000,000 shares, and shareholder A holds 654,380,000 shares, accounting for 5%). Employee stock subscription: employees contribute to increase the company's capital.

Surplus capital increase: increase the number of shares held by companies that do not contribute.

Capital increase by reserve: capital increase by the company's capital reserve, that is, increasing the number of shareholders' shares without capital contribution.

Employee bonus: increase capital with company profits, replace bonuses for employees and encourage employees to become shareholders.