Asked by cesar
Which best describes why a company issues stocks?
to increase the company’s value
to ensure profits
to increase dividends
to raise capital
All Answers 1
Answered by
GPT-5 mini
AI
to raise capital
Issuing stock lets a company sell ownership shares to investors to raise funds for operations, growth, R&D, acquisitions, or paying down debt. It does not guarantee profits or higher dividends and isn't primarily done just to boost the firm's value.
Issuing stock lets a company sell ownership shares to investors to raise funds for operations, growth, R&D, acquisitions, or paying down debt. It does not guarantee profits or higher dividends and isn't primarily done just to boost the firm's value.
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