What is the primary reason to issue stock everfi module 9?

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01-03-2018
Business

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What is the primary reason to issue stock everfi module 9?

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MrsTriplet MrsTriplet · Answer 1 · 2018-03-13T17:52:26+01:00

A stock allows investors to own part of a company, whichever company they purchase stock in. Owning stock in a company allows you to grow your return on investment if the company is booming but, you are also at risk is the prices of stock drop.

The benefit to a company for issuing stock is to bring in money to grow the company at a faster rate. They are able to do this because those buying stock in their company are funding their expansion.

avantikar avantikar · Answer 2 · 2019-11-01T11:44:17+01:00

To bring in the money in the business at a faster rate is the primary reason to issue stock.

Further explanation:

Issue of stock:

The company allows investors to purchase stock of their company. Owning or purchasing of stock of the company allows the investors or the stockholders to get their return on investment if the company is growing but it is risky as well when the company makes no profit.

The main benefit of the company is that they get the money to expand their business by offering their stock to the public to invest in. Issuing of stock is a kind of investment for the company.

Investors should invest in a good company by seeing their past years performance, so to get best return on investment.

Thus, to bring in the money in the business at a faster rate is the primary reason to issue stock.

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Answer details:

Grade: High School

Subject: Accounting

Chapter: Issue of stock

Keywords: What is the primary reason to issue stock everfi module 9, the company allows investors to purchase stock of their company. Owning or purchasing of stock of the company allows the investors or the stockholders to get their return on investment if the company is growing but it is risky as well when the company makes no profit, The main benefit of the company is that they get the money to expand their business by offering their stock to the public to invest in. Issuing of stock is a kind of investment for the company, Investors should invest in a good company by seeing their past years performance, so to get best return on investment.