which best describes why a company issues stocks?\n to increase the companys value\n to ensure profits\n to…

which best describes why a company issues stocks?\n to increase the companys value\n to ensure profits\n to increase dividends\n to raise capital

which best describes why a company issues stocks?\n to increase the companys value\n to ensure profits\n to increase dividends\n to raise capital

Answer

Brief Explanations:

When a company issues stocks, it is selling ownership shares in the company. Investors buy these stocks. The money the company receives from selling these stocks is capital that the company can then use for various purposes like expanding operations, funding new projects, etc. Issuing stocks is a primary way for companies (especially larger ones) to obtain the financial resources (capital) they need to grow and operate. It's not about directly increasing the company's value (though a successful use of capital might indirectly do so), ensuring profits (as there are no guarantees), or just increasing dividends (dividends are a distribution of profits to shareholders, and issuing stocks is more about getting initial funds).

Answer:

to raise capital