Which best describes why a company issues stocks?

to increase the company's value

to ensure profits

to increase dividends

to raise capital

Pick ONE!

The answer is the fourth option - "to raise capital"

A company stock refers to the equity stakes of the owner. For small businesses, selling stocks or bonds is another way of raising large sums of cash for a capital aside from borrowing from a lender. But when selling stocks, it means they own a part of your company.