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

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

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

Answer

Brief Explanations:

When a company issues stocks, it sells ownership shares to investors. The primary goal of this action is to generate funds (capital) that can be used for business operations, expansion, debt repayment, or other corporate needs. The other options are not the core reason: increasing company value is a potential outcome, not the direct purpose; issuing stocks does not guarantee profits; and increasing dividends is dependent on future performance, not the reason for issuing stocks.

Answer:

to raise capital