“You just made my 1,000 shares less valuable!” he yelled.

The next week, an angry shareholder named Gerald stormed into the office.

A revolutionary, eco-friendly espresso machine had just been invented. It cost $50 million, but it would cut their electricity bills in half and double their coffee quality. Mia and Leo knew that if they didn’t buy these machines, a rival chain would.

They could take out a bank loan (debt). But interest rates were high, and making monthly payments would eat into their profits for years.

“It’s when a public company, already seasoned by the market, decides to bake a second batch of shares to fund its next big dream.”

The founders, Mia and Leo, had already done the “big debut” years ago—their . That was the day they first sliced their private company into millions of tiny, tradable pieces (shares) and sold them to the public to raise money for their first big expansion.

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