<em><u>The primary reason to issue stock raise money that will make the company grow bigger.</u></em>
Further Explanations:
Stock is the equity investment representing part ownership in a firm entitling to share the corporation’s assets and earnings. In present days ownership of assets is recorded electronically and held by brokerage firm. Usually, they are of two types:
i) Common stock- Common stock are the shares that entitling the holder's assets depending upon the future of the company. We can take example that if a company has 100 shares, then each share equals one percent of the company’s ownership.
ii) Preferred Stock- These stocks entitles a holder a particular dividend of the company whose payment is given priority over common stocks.
In the same way, Issuing stock means to transform a private company to a public company. A public company has more regulators and obligations against its stockholders. We can take an example of the “Home Depot Store” having 3 stores during its initial age. It moved to Public company in 1981 and presently it is having more than 2,200 stores.
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2. in a parliamentary system of representative democracy, the prime minister is appointed by the monarch. is elected by representatives chosen by the people. is the leader of the party that won the most seats in parliament. is elected directly by the people?<u>brainly.com/question/477236
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3. in which section of the declaration of independence is the purpose of government described?
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Answer Details
Grade: High School
Subject: History
Chapter: Stock
Keywords: Stock, investment representing, ownership, firm, corporation’s, assets, earnings, Common stock,Preferred Stock, company,100 shares,Issuing stock, private company, public company, Home Depot Store.