A company issues stocks to raise capital.
What is a simple definition of stock and shares?
A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares".
Why company issues shares?
Companies issue shares to raise money from investors who tend to invest their money. This money is then used by companies for the development and growth of their businesses.
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