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1 November, 14:19

What best describes why a company issue stocks

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Answers (2)
  1. 1 November, 17:09
    0
    Answer: to raise capital
  2. 1 November, 17:42
    0
    (D) to raise capital

    Explanation:

    A company issues stocks for several reasons. Among them, the most significant one is to increase the capital of the company. If the company issues stocks in the capital market, investors will buy the company's stock if they think that the company has a bright future. In this way, a company can raise their capital. Therefore, option D is correct.

    Issuing stocks cannot either guarantee the profit of a company or provide dividends to the shareholder.
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