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The bond market is considerably larger than the stock market. In your opinion, why is this?...

The bond market is considerably larger than the stock market. In your opinion, why is this? Why do companies choose to finance their projects with debt so often?

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The bond market is considerably larger than the stock market worldwide because all the new projects are being started by the bond financing and if the project is successful in the initial years then the company go for the Public Offering. The price of the bond includes all the costs and fees of issuing them, so the company has not to bear much cost of bond debt financing.

The companies use to choose to finance their projects with debt so often because the share issue require a lot of formalities and a good cost of issuance has to incurred, therefore the bond financing is preferred by the companies.

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