What is a potential disadvantage of issuing new shares?

Issuing new shares can lead to a dilution of ownership among existing shareholders. This is a significant concern because when a company issues additional shares, the percentage of the company owned by current shareholders decreases. As a result, existing shareholders may have less control over corporate decisions and the direction of the company, as their voting power is reduced relative to the total number of shares outstanding. This situation can create tension among shareholders if they believe that their interests are not adequately represented compared to those of new investors.

Additionally, this dilution can impact shareholder value as the distribution of profits through dividends will now be spread over a larger number of shares. This means existing shareholders could receive smaller dividends per share, which may affect their perception of the investment's attractiveness.

The other options do not highlight disadvantages associated with issuing new shares or misinterpret the implications of such actions. Attracting more investors can be beneficial, low issue costs could reflect operational efficiency, and the idea of guaranteeing immediate return on investment misrepresents the inherent risks associated with issuing shares. Therefore, the impact on shareholder control stands out clearly as a notable disadvantage when it comes to the issuance of new shares.