Question

How do individuals invest in corporations by purchasing stocks?

Answer 1

By purchasing stocks, an individual gains an ownership share in the corporation.

A corporation may choose to sell its stock to raise funds for its operations

Step-by-step explanation:

When an individual purchases stock, that increases the market capitalization of the corporation, giving the corporation more opportunities for investment.

Answer 2

Step-by-step explanation:

After a company goes public through an initial public offering (IPO), its stock becomes available for investors to buy and sell on an exchange. Typically, investors will use a brokerage account to purchase stock on the exchange, which will list the purchasing price (the bid) or the selling price (the offer).