Which best describes why a company issues stocks? to increase the company's value to ensure profits to increase dividends to raise capita

Question

Business

Aisha Mendoza

18 May, 20:14

Which best describes why a company issues stocks? to increase the company's value to ensure profits to increase dividends to raise capita

+4

Answers (2)

Know the Answer?

Nayeli · Answer 1

D

Explanation:

100%

Ricardo Campos · Answer 2

to raise capita

Explanation:

A stock or shares represents the smallest unit of ownership in a company. Ownership of a company is acquired by buying the company's stock in the stock market, or having contributed capital during its formation. The shareholder, therefore, gives out money to a company in exchange for shares.

A company issues shares to raise capital. As investors purchase shares, the company gets money to expand its business. The investors become shareholders and are entitled to share in the profits of the business.