Question

Why do companies issue new stock and how? What are some famous cases?

Why do companies issue new stock and how? What are some famous cases?

Homework Answers

Answer #1

Why does companies issue stock:-
Companies can decide to make the transition from the private market to the public market for several reasons. When a company issues stock it raises money that it can use to expand its business. Once a company is public it can also decide to issue more stock.As a result, the business becomes more profitable.
Following are the steps to issue new stocks:-
1. Familiarize yourself with the basics of issuing stock.
2. Review the benefits of issuing stock.
3. Examine the disadvantages of issuing stock.
4. Consider alternatives to issuing stock.

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