18
QuizMultiple Choice

N/A — Exam

Question 18 • Economics

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 stock to sell ownership shares to investors and raise money for its business. The funds can be used for expansion, operations, or other needs. Issuing stock does not guarantee profits or dividends, so “to raise capital” is the best choice.

AI-written and checked against the verified answer.

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