9
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 9 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

Which best describes why a company issues stocks?

Answer
A
to increase the company’s value
B
to ensure profits
C
to increase dividends
D
to raise capital

Explanation

A company issues stocks to sell ownership shares to investors and bring money into the business. This raises capital that can be used for expenses, growth, or other needs. Issuing stock does not guarantee profits or dividends, and increasing the company’s value is not the direct purpose.

AI-written and checked against the verified answer.

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