Ann: Trading Halt, page-125

Yep, most likely true the banks would give you a loan. Although there can be circumstances where they might not, especially in the current climate. Anyway, that's not too relevant to the analogy. The reasons why a company would choose to finance with equity instead of debt are not what the analogy is about. I'd prefer a source of capital that ends up returning to shareholders than banks. If they raise the money from banks it also dilutes the value of what we hold, just in a different way.

@bentas74 you run a business without taking on debt ... so do I. But I could probably be a lot more successful if I did take on debt. As with most things, though ... leverage vs risk.