Which method of corporate finance is used the most? Why?

What will be an ideal response?


Reinvestment accounts for about 75 percent of new financial capital for corporations. Smaller corporations may find it difficult to find people willing to buy shares of stock, and the existing owners may not want other owners involved in electing directors. Smaller firms may also have a difficult time getting people to lend to them. So, they have to rely on reinvesting profits.