1.9k views
5 votes
Why do most companies sell shares of stock?

User Ajwl
by
8.1k points

2 Answers

4 votes
The reason is that at some point every company needs to raise money. To do this, companies can either borrow it from somebody or raise it byselling part of the company
User Jlujan
by
8.1k points
4 votes
The reason is that at some point every company needs to raise money. To do this, companies can either borrow it from somebody or raise it byselling part of the company, which is known as issuing stock. Acompany can borrow by taking a loan from a bank or by issuing bonds
User Skaeff
by
8.1k points