Question

question 3 of 10
how does a corporation benefit from issuing stocks?
it increases the property value of their factories
it allows one or two highly skilled businessmen to make important decisions
it allows them to raise a large sum of money while spreading out the financial risk
it limits their ability to raise money, which limits the risks they could take

Explanation:

Issuing stocks enables a corporation to sell ownership shares to investors. This way, it can raise substantial capital. Also, by having multiple shareholders, the financial risk is distributed among them.

Answer:

it allows them to raise a large sum of money while spreading out the financial risk