Question
Why would a company sell stock?
to pay taxes
to expand its business
to avoid paying taxes
to increase demand for goods
to pay taxes
to expand its business
to avoid paying taxes
to increase demand for goods
Answers
GPT-4o mini
A company may sell stock primarily to **expand its business**. By issuing new shares, the company can raise capital to fund various growth initiatives, such as investing in new projects, increasing production capacity, or acquiring other businesses.
Selling stock can also help a company improve its financial position by paying off debt or strengthening its balance sheet. However, selling stock is not typically done specifically to pay taxes or avoid taxes. Increasing demand for goods is an outcome that might arise from expanding operations but is not the direct purpose of selling stock.
Selling stock can also help a company improve its financial position by paying off debt or strengthening its balance sheet. However, selling stock is not typically done specifically to pay taxes or avoid taxes. Increasing demand for goods is an outcome that might arise from expanding operations but is not the direct purpose of selling stock.