Final answer:
Corporations can raise money to expand their business by selling stocks. Stocks are certificates granting partial ownership of a company. By selling stocks, corporations can generate financial capital to fund their business expansion.
Step-by-step explanation:
Corporations can raise money to expand their business by selling stocks.
Stocks are certificates granting partial ownership of a company. When corporations sell stocks, they sell ownership shares to the public, allowing individuals to invest in the company. By selling stocks, corporations can generate financial capital to fund their business expansion.
For example, if a corporation wants to build a new plant or start a research and development project, it can sell stocks to raise the necessary funds. The individuals who purchase the stocks become partial owners of the company and may benefit from the company's profits and growth.