Final answer:
Corporations and municipalities offer securities to raise capital for operations, expansion, or repaying early investors, with the first public sale known as an IPO.
Step-by-step explanation:
Entities such as corporations and municipalities may offer or propose to offer their securities for sale to the investing public for the purpose of raising capital. This capital can be used to finance operations, repay early-stage investors such as angel investors and venture capital firms, or facilitate expansion of the business.
The first sale of stock to the public by a corporation is known as an initial public offering (IPO). Post-IPO, any stock issued, including treasury stock or through secondary offerings, allows for a flow of funds back to the early investors and supports the established company’s growth.