O'Level  &

Advantage:
It is a permanent source of finance.

Explanation:
Because GCF is a public limited company, so the money raised from issuing new shares comes from shareholders. This means that the company does not have to repay this money and does not pay interest, unlike a loan. This allows GCF to use the funds to finance the $50m takeover safely and also to invest in other long-term projects, such as the team building courses to motivate 250 employees.

Disadvantage:
Ownership of the company becomes more diluted.

Explanation:
This is becasue issuing new shares means more shareholders gain a stake in the company, which reduces the percentage of ownership of existing shareholders. For example, the owner of GCF might loose their power if other new shareholders earn a higher percentage in the company. This may affect decision-making of GCF, such as changes in the plan of taking over competitor.