CHALLENGES OF FINANCING INVESTMENTS THROUGH STOCK ISSUANCE - CROATIAN EXAMPLE.

In order for companies to generate profit, it is necessary for them to remain competitive, which is achievable only through new investments. Sources for this can be categorized into those from internal accumulation, borrowing from banks, issuing debt securities, and issuing new shares and exchanging them for capital on the stock market. The challenges of self-financing often involve insufficient funds for envisioned investment projects, and this method of financing also jeopardizes the liquidity of the company. This paper presents the main characteristics and methods of financing through stock issuance. Examples of financing through stock issuance by Croatian companies in the last twenty years are analyzed, highlighting the advantages and obstacles of this financing method. The paper seeks to explain the reasons why the capital of Croatian companies is still relatively closed compared to companies from developed market economies. [ABSTRACT FROM AUTHOR]