If you own one company.you started company with the help of your own money,your parents money,or your relatives money. Now situation is that now you require the growth of the company. But situation is that you haven't money yet because your money you invested to growth your business. So you have now two ways to growth your business. Take a big amount of loan from bank. Sell your partnership to public in form of stocks. Now, if you try first way then you go to the bank . And tell them I want some money so give me a loan. So bank will pay your money in forms of loan.and now you invest your money to growth your business.but there are big negative point us there you pay some interest on loan. So if you take big amount of loan so definetly you pay big amount of interest.and you know that banks loans interest rates. So if your business take j curve(growth) so your big amount of profit gones to the bank in forms of Interest. Now,If you try second way which gones through public.yo