Question

What are some reasons companies sell stocks

Answer 1

We can actually deduce here that some reasons why companies sell stocks are:

• For growth of the business
• Get money for expansion
• To attract traditional lenders
• To attract investors
• To buy other firms through stock shares.

What is stock?

Stock is actually known as a security which represents the possession or ownership of a part or fraction of the issuing corporation. The unit of stock are actually known as shares.

We see that when companies issue shares, they do so in order to raise money from investors. Also, since there is need for expansion of their business, they sell stocks to expand their business.

When companies receive money from stocks and shares, they the money to develop and grow their business.

Learn more about stocks on brainly.com/question/25765493

#SPJ1