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

Question

12-05-2020
Social Studies

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

Respuesta :

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carolmartelotte2020 carolmartelotte2020 · Answer 1 · 2020-10-10T17:35:13+02:00

When the stockholders (people that buys or invest their money in a busines) use their capital in the company, this means that the company divided its ownership (the capital stock) in equal parts, called Shares. The Shares belong to each one of

the stockholders. The Shares together form the stock and they represent a fraction of ownership in a business.

I think is D to raise capital

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ayokenny2001 ayokenny2001 · Answer 2 · 2022-05-30T11:26:49+02:00

ayokenny2001 ayokenny2001

30-05-2022

The best item that describes why a company issues stocks is to raise capital.

What is stock?

This is a unit of capital of a company, allocated to an individual. Once an individual acquires a stock, they automatically become part of the owner of the company.

Hence, the best item that describes why a company issues stocks is to raise capital.

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

Respuesta :

What is stock?

Otras preguntas

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