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.